Kindly note that all questions are in the attached image.
Question 3.
Assume that two of the world's leading passenger aircraft manufacturers, Boeing based in the
USA and Airbus based in France, want to frame sales strategies for the coming financial year.
Assume also that their strategies will be successful only if one of them concentrates on the
emerging markets (of Asia, Eastern Europe, Africa, and South America) and the other
concentrates on the existing markets (of Western Europe, Oceania and North America). A single
market cannot accommodate the aircrafts of both manufacturers and each manufacturer can
concentrate only on one market. Their strategies and associated payoffs (in billions of dollars)
are presented in the Table below. Determine the strictly dominant or dominated strategies, if
any, in this game. What will be the equilibrium of the game?
Question 4.
Players MTN (A) and Telecel (B) are playing a simultaneous move game and both can choose
either strategy S_(1) or strategy S_(2). If both choose S_(1) both receive 0 . If both choose S_(2) both receive
-2 . If their chosen strategies differ they both receive -4.
(a) Write out a table representing each player's strategies and payoffs (payoff matrix).
(b) State the set of strategy profiles.
(c) Suppose player A plays S_(1). What is B's best response and why?
(d) Suppose player B plays S_(2). What is A's best response and why?
(e) Does A have a dominant strategy? Justify your response.
(f) Is there a unique outcome by elimination of dominated strategies? Justify your response.
(g) What is (or are) the pure strategy NE to this game?
(h) Explain precisely why it is the NE (if more NE just pick one of them). Pick one strategy
profile that is NOT a NE and explain precisely why.
(i) Which of the NE do you find most likely to prevail in the real world. Why? What about if
the game was played repeatedly?
Question 3. Assume that two of the world's leading passenger aircraft manufacturers.Boeing based in the USA and Airbus based in France,want to frame sales strategies for the coming financial year. Assume also that their strategies will be successful only if one of them concentrates on the emerging markets of Asia.Eastern Europe,Africa,and South America and the other concentrates on the existing markets (of Western Europe,Oceania and North America.A single market cannot accommodate the aircrafts of both manufacturers and each manufacturer can concentrate only on one market.Their strategies and associated payoffs in billions of dollars are presented in the Table below. Determine the strictly dominant or dominated strategies.if any.in this game.What will be the equilibrium of the game?
Airbus's strategies
Existing Markets Emerging Markets Boeing's strategies Existing Markets -2, -2 5,5 Emerging Markets 5.5 -2,-2
Question 4. Players MTN(A and Telecel (B are playing a simultaneous move game and both can choose either strategy Si or strategy S2.If both choose Si both receive 0.If both choose S both receive -2.If their chosen strategies differ they both receive -4.
a Write out a table representing each player's strategies and payoffs (payoff matrix) (b State the set of strategy profiles. c Suppose player A plays Si.What is B's best response and why? d Suppose player B plays S2.What is A's best response and why? e Does A have a dominant strategy? Justify your response f Is there a unique outcome by elimination of dominated strategies? Justify your response g What is or arethe pure strategy NE to this game? h Explain precisely why it is the NE (if more NE just pick one of them.Pick one strategy profile that is NOT a NE and explain precisely why. 1 Which of the NE do you find most likely to prevail in the real world. Why? What about if the game was played repeatedly?