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Two Firms in a Local Market Compete in the Manufacture

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Two firms in a local market compete in the manufacture of cyberwidgets.Each firm must decide if they will offer a warranty or not.The pay-offs of each firm's strategy is a function of their competitor as well.The pay-off matrix is presented below. Two firms in a local market compete in the manufacture of cyberwidgets.Each firm must decide if they will offer a warranty or not.The pay-offs of each firm's strategy is a function of their competitor as well.The pay-off matrix is presented below.   Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game? Should the players use a mixed strategy? Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game? Should the players use a mixed strategy?


Definitions:

NHL Team

A professional ice hockey team that competes in the National Hockey League, North America's premier professional ice hockey league.

Average Attendance

The mean number of individuals present at a series of events or gatherings.

Games Won

The total number of victories achieved in a series of games or sporting events.

Random Sample

A selection from a larger population that is made in such a way that every individual has an equal chance of being included.

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