1. Find the dominant stratgey
for Coca-cola and explain your answer with numeric/ word
answer.
2.What is the dominant strategy for Pepsi? Explain your answer.
3. Does a Nash Equilibrium strategy exist for each firm? For which one? Explain answer.
Homework Answers
1) When Pepsi choose Left, Cola will choose Up as 5 bl >3 bl
When Pepsi choose right, Cola will choose Up as 10 bl>6 bl
so, Coca-cola's dominant strategy is to choose the Discount price
2) When cola choose up, Pepsi will choose left because 3 bl>2 bl
When cola choose down, Pepsi will choose Left because 5 bl>4 bl
so, Pepsi's dominant strategy is to choose the Discount price
3) The NE in this game for both of them is to choose the Discount price
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1. Find the dominant stratgey
for Coca-cola and explain your answer with numeric/ word
answer.
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