In the accompanying game, firms 1 and 2 must independently decide whether to charge high or low prices.
Firm 1Firm 2 High PriceLow PriceHigh Price(10,10)(5,−5)Low Price(5,−5)(0,0)
A dominant strategy for firm 1 is
Multiple Choice
low price and different from firm 1's secure strategy.
different from firm 1's secure strategy.
high price.
low price.