Refer to the payoff matrix provided here. In this game between Delta Airlines and American Airlines,...

Refer to the payoff matrix provided here. In this game between Delta Airlines and American Airlines, what is the Nash equilibrium?

Group of answer choices

The Nash equilibrium occurs when both firms offer a discount.

The Nash equilibrium occurs when Delta offers the discount, but American does not.

The Nash equilibrium occurs when American offers the discount, but Delta does not.

The Nash equilibrium occurs when both firms offer no discount.

Expert Solution

The answer is: A). The Nash equilibrium occurs when both firms offer a discount.

A Nash Equilibrium is a set of strategies that players act out, with the property that no player benefits from changing their strategy. Intuitively, this means that if any given player were told the strategies of all their opponents, they still would choose to retain their original strategy.

Rahul Sunny answered 2 years ago

For a two-person zero-sum game between X and Y, the payoff matrix for X is: Y1...

For a two-person zero-sum game between X and Y, the payoff matrix for X is: Y1 Y2 Y3 X1 1 4 2 X2 4 1 2 Formulate the linear program for finding the best mixed strategy for X that maximizes its minimum expected pay off, EP, with p1 and p2 bein the respective probabilities for playing strategies X1 and X2.

a.Identiofy the methods used by Southwest Airlines,American Airlines and Delta Airlines to value the inventories. b.Which...

a.Identiofy the methods used by Southwest Airlines,American Airlines and Delta Airlines to value the inventories. b.Which method is used to prepare the cash flow statement ,direct or indirect for these companies?

How would I create a game theory payoff matrix with a home buyer and a home...

How would I create a game theory payoff matrix with a home buyer and a home seller where the seller can accept, reject, or counteroffer and the home buyer can make an offer or make no offer? Any payoff in dollars is fine, just need to know how to figure this out.

Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2...

Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2 Strategy X Y Player 1 A 5, 5 0, -200 B -200, 0 20, 20 a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. Instructions: You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers....

The following payoff matrix represents a single-period, simultaneous move game to be played by two firms....

The following payoff matrix represents a single-period, simultaneous move game to be played by two firms. Show all the best responses for each player by placing checkmarks next to each payoff that reflects a best response choice. Does Firm A have a dominant strategy and if so, what is it? Does Firm B have a dominant strategy and if so, what is it? Does a Nash Equilibrium (or multiple NE) exist for this game and if so, what is it...

The payoff matrix for a game is 4 −1 5 −6 2 1 1 −4 2...

The payoff matrix for a game is 4 −1 5 −6 2 1 1 −4 2 . (a) Find the expected payoff to the row player if the row player R uses the maximin pure strategy and the column C player uses the minimax pure strategy. (b) Find the expected payoff to the row player if R uses the maximin strategy 40% of the time and chooses each of the other two rows 30% of the time while C uses...

1. Use a payoff matrix to illustrate a two player, two strategy playoff game where the...

1. Use a payoff matrix to illustrate a two player, two strategy playoff game where the nash equilibrium is not the social optimum?

GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Subways and Quiznos (Sandwich Style Resturants. Below is...

GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Subways and Quiznos (Sandwich Style Resturants. Below is the profit payoff matrix for these two restaurants depending on whether they set their Chicken sandwich price HIGH or LOW TABLE 1 Quiznos LOW price Quiznos HIGH price Subway LOW price $7 million for Subway $7 million for Quiznos $12 million for Subway $5 million for Quiznos Subway HIGH price $5 million for Subway $12 million for Quiznos $9 million for Subway $9...

5. American Airlines (AA) and United Airlines (UA) are engaging into the following one-shot simultaneous game:...

5. American Airlines (AA) and United Airlines (UA) are engaging into the following one-shot simultaneous game: if AA advertises for a fair from Newark to Chicago and UA does not, AA will make $20 million in profits and UA will make $6 million. If UA advertises and AA does not, AA will make $2 million and UA will make $6 million. If AA advertises and UA advertises, each firm earns $10 million. If neither firm advertises, UA will make $8...

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions. Player...

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions. Player 2 Strategy C D E F Player 1 A 25,15 4,20 16,14 28,12 B 10,10 5,15 8,6 18,13 a. What is player 1’s optimal strategy? Why? b. Determine player 1’s equilibrium payoff.

Question