The following game table shows the payoffs for two competing furniture stores: Sofa House and Couch Factory (Sofa House's payoffs are listed first in each outcome). The Nash equilibrium in this game is _____, and this game is best categorized as a _____.

A) Low, Low = 95, 85; leadership game
B) High, Low = 80, 130; leadership game
C) High, High = 120, 110; prisoner's dilemma
D) Low, Low = 95, 85; prisoner's dilemma

Question

The following game table shows the payoffs for two competing furniture stores: Sofa House and Couch Factory (Sofa House's payoffs are listed first in each outcome) . The Nash equilibrium in this game is _____, and this game is best categorized as a _____.

A) Low, Low = 95, 85; leadership game 
B) High, Low = 80, 130; leadership game 
C) High, High = 120, 110; prisoner's dilemma 
D) Low, Low = 95, 85; prisoner's dilemma

Quizplus · Accepted Answer

The Answer of The following game table shows the payoffs for two competing furniture stores: Sofa House and Couch Factory (Sofa House's payoffs are listed first in each outcome). The Nash equilibrium in this game is _____, and this game is best categorized as a _____.

A) Low, Low = 95, 85; leadership game 
B) High, Low = 80, 130; leadership game 
C) High, High = 120, 110; prisoner's dilemma 
D) Low, Low = 95, 85; prisoner's dilemma

The Following Game Table Shows the Payoffs for Two Competing