1. Consider a market for mid-size sedan with two players, Toyota
and Kia.
Each company can set either high price (say $30,000) or low
price (say $25,000) for their signature mid-size sedan model. The
summary of the game is provided by a 2x2 matrix below. The first
number in each payoff box is for Kia and the second number is for
Toyota.
Toyota
Kia
Low P
High P
Low P
0,0
2,-1
High P
-1,2
1,1
(a) Identify the Nash...