Suppose that two firms are selling a homogeneous product. They can
charge high price (H) or low price (L). The pay-offs from their actions are
given in the following game matrix :
Firm-2
H
L
Firm-1 H
8, 8 3, 10
L 10, 3 5, 5
(i)
Find Nash equilibrium for the given game.
(ii)
Is there any dominant strategy in this game? Explain.