You Are the Manager of the ABC Novelty Store,and Your

question 26

Essay

You are the manager of the ABC novelty store,and your only competitor is the XYZ novelty store.You are both trying to decide on which magic tricks and party favors to carry in stock.The product mixes available to both of you are low,medium,and high in variety.Your expected earnings in this market are shown in the following table:
$$\begin{array}{c}\text { Firm XYZ }\\\text { Firm ABC }\begin{array} { | l | l | l | l | } \hline \text { Strategy } & \text { Low } & \text { Medium } & \text { High } \\\hline \text { Law } & 100,100 & 150,200 & 200,300 \\\hline \text { Medium } & 200,75 & 125,150 & 225,195 \\\hline \text { High } & 300,200 & 100,225 & 150,250 \\\hline\end{array}\end{array}$$ a.Find the Nash equilibrium (or equilibria)for a simultaneous-move,one-shot play of this game.
b.What outcome would you expect in this one-shot game?
Why?

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Definitions:

Procedural Justice

The degree to which policies and rules are fairly applied.

Fairly Applied

a principle or rule that is implemented or enforced in an impartial, equitable, and consistent manner across all relevant situations or individuals.

Distributive Justice

The degree to which outcomes are distributed fairly.

Dignity and Respect

Treating individuals with inherent worthiness and consideration, recognizing and valuing their rights, feelings, and perspectives.