Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm.
-Refer to Table 17-24. Which firms have a dominant strategy?
A)A and B
B)Neither A nor B
C)A but not B
D)B but not A

Question

Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. 
-Refer to Table 17-24. Which firms have a dominant strategy?
A)A and B 
B)Neither A nor B 
C)A but not B 
D)B but not A

Quizplus · Accepted Answer

Firm A has a dominant strategy if it has a strategy that results in a higher payoff regardless of what the other firm does. The table must show that Firm A has such a strategy, while Firm B does not.

Table 17-24 Two Firms Are Considering Going Out of Business and Selling