Refer to the payoffs in the table above. Sears and Wal-Mart must decide whether to lower their prices based on the profits shown in the table. This game has
A) no Nash equilibrium.
B) a Nash equilibrium: Sears keeps its prices high and Wal-Mart lowers its prices.
C) a Nash equilibrium: both Sears and Wal-Mart keep prices high.
D) a Nash equilibrium: both Sears and Wal-Mart lower prices.
D
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The price of input goods changes due to _____________ or _______________ for that particular good.
Fill in the blank(s) with the appropriate word(s).
A mortgage, where the monthly payments are the same for the duration of the loan, is an example of a(n):
A. installment loan. B. equity security. C. variable payment loan. D. fixed payment loan.
Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of:
A. $250,000. B. $125,000. C. $62,500. D. $0.
Which of the following is a variable in the equation of exchange?
A. the price level. B. the money supply. C. all of these D. real Gross Domestic Product (GDP).