Please help me slove this problem Thank you! 1. Two men\'s clothing stores that
ID: 1113457 • Letter: P
Question
Please help me slove this problem Thank you!
1. Two men's clothing stores that compete for most of the market in a small town in Ohio must choose their average price levels simultaneously. The following payoff table facing the two firms, Arbuckle & Son and Baldwin Apparel, shows the weekly profit outcomes for the various price level combinations. Baldwin Apparel Low Price High Price Low $9,000, $6,000 $7,000, $4,000 Arbuckle & Sons $8,000, $9,000 $10,000, $8,000 High a. Does Arbuckle & Sons have a dominant strategy? If so, what is it? b. Does Baldwin Apparel have a dominant strategy? If so, what is it? c. Does Arbuckle & Sons have a dominated strategy? If so, what is it? d. Does Baldwin Apparel have a dominated strategy? If so, what is it?Explanation / Answer
A) Dont have dominant strategy because his best action changes with the action of its rival
B)Baldwin has dominant strategy as low price
C)No because dominated staryegy is one whivh is never played
D) yes high price is dominated strategy.
E)(Low price,Low price) is a stable equilibrium or nash equilibrium