The above figure shows the payoff to two airlines, A and B, of ...

[lak]

The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, which one of the following statements is TRUE?
◦ Neither firm entering is a Nash equilibrium.
◦ Firm B will not enter because it knows firm A will.
◦ Since firm B's decision is unpredictable, firm A's decision is unpredictable.
◦ Since firm B has no dominant strategy, its decision is unpredictable.

[skipfourms123]

Firm B will not enter because it knows firm A will.

[soccerdreamer_17]

The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what will happen if the government offers a $30 subsidy to airlines that serve this route?
◦ Firm B is still better off not entering.
◦ Neither firm will have a dominant strategy.
◦ Firm A will decide not to enter since firm B will.
◦ Both firms will enter profitably.

[dudman123]

Both firms will enter profitably.

[soccerdreamer_17]

Thanks

[dudman123]

Welcome

[Yi-Chen]

The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, how many pure Nash equilibria are there?
◦ 2
◦ 0
◦ 1
◦ It cannot be determined.

[ergserg]

1

[tfester]

The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?
◦ Neither firm has a dominant strategy.
◦ Only firm A will enter.
◦ Not entering is a dominant strategy for both firms.
◦ Neither firm entering is a Nash equilibrium.

[mirabriestensky]

Neither firm has a dominant strategy.