Eco 550 Assignment 3
1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn’t matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.
- Does either player have a dominant strategy? Explain.
- Is there Nash equilibrium in this game? Explain.
- Why is this game called a cooperative game?
- What is the firm’s Total Revenue?
- What is the Total Cost?
- What is the firm’s Total Profits?