Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies.
A) Cruise R Us No Specials and Cruise the World No Specials is a Nash equilibrium.
B) There are no Nash equilibria in this game.
C) Cruise R Us Specials and Cruise the World No Specials is a Nash equilibrium.
D) Cruise R Us Specials and Cruise the World Specials is a Nash equilibrium.
B) There are no Nash equilibria in this game.
You might also like to view...
New growth theory asserts that ________ will lead us to greater productivity and economic growth
A) nothing B) new machinery C) leisure time D) unlimited wants E) government regulation
Most of the EPA Superfund expenditures have gone for court costs and legal fees
a. True b. False