Question

In: Economics

Suppose Firms A and B sell competing products and are deciding whether to undertake advertising campaigns....

Suppose Firms A and B sell competing products and are deciding whether to undertake advertising campaigns. Each firm will be affected by its competitor’s decision. Table 13.1 provides the pay-off matrix:

table 13.1 firm B-advertise firm B - don't advertise
firm A-advertise 10, 5 15, 0
firm A - don't advertise 6, 8 10, 2

A Please transform this game in normal form into a game in extensive Form, and then try to find the equilibrium. Assume that firm A is the first mover.

table 13.2 firm B-advertise firm B - don't advertise
firm A-advertise 10, 5 15, 0
firm A - don't advertise 6, 8 20, 2

BPlease transform this game in normalform into a game in extensive form, and then try to find the equilibrium. Assume that firm A is the first mover.

table 13.3 firm 2-crispy firm 2-sweet
firm 1- crispy -5, -5 10, 10
firm 1 - sweet 10, 10 -5, -5

CPlease transform this game in normalform into a game in extensive Form, and then try to find the equilibrium. Assume that firm A is the first mover.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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