Libertyville has two optometrists, Dr. Smith (S) and Dr. Jones (S). Each optomet

Question

Libertyville has two optometrists, Dr. Smith (S) and Dr. Jones (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below. Answer questions a through c:

a.Does Dr. Smith have a dominant strategy?

b.Does Dr. Jones have a dominant strategy?

c.Does a Nash equilibrium exist for this game?

PLEASE : if its possible i dont want hand written answer

Dr. Smith (S) Don't Advertise advertise Advertise S $383 S $384 $373 $413 Don't S: $423S: $403 advertiseJ: $363J:$393 Dr. Jones (J) J3

Explanation / Answer

Remember that a strategy is a dominant strategy for a player if it yields the best payoff (for that player) no matter what strategies the other players choose.

a.) Dr. Smith have a Dominant STRATEGY TO ADVERTISE. ( Advertise = $806, dont Advertise = $787 )

b.) Dr. Jones have a Dominant strategy TO ADVERTISE.( advertise= $767, dont advertise = $756)

c.) The game has a Nash equilibrium in which both optometrists advertise.

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.