At a Nash equilibrium: a. each firm is said to be doing as well ...

[Pea0909berry]

At a Nash equilibrium:
 a. each firm is said to be doing as well as it can, regardless of the actions of its competitor.
  b. each firm is said to be doing as well as it can, given the actions of its competitor.
 c. firms always choose strategies in order to maximize the social welfare.
 d. firms always choose strategies to avoid the worst possible outcome.

Question 2

Mention some of the ways in which the problem of asymmetric information can be reduced.

[Amiracle]

Answer to Question 1

b

Answer to Question 2

The problem of asymmetric information can be reduced if:
a) there is a standardized report on the credibility of a seller.
b) if the seller offers a warranty that covers the cost of repairs.
c) the seller is experienced and has a good reputation.

[Pea0909berry]

TYSM

[tkempin]

Excellent