Consider two firms in the hardware store market in Sydney, Handy Hardware (HH) and Tradie Heaven (TH). The timing of the game is that first HH chooses to Discount (D) or Not Discount (ND). Having observed its rival’s choice, TH can then choose to either D or ND. The payoffs are as follows. If both firms chose D, each firm gets a profit of 2. If both firms opted for ND, each firm also gets 2. If HH chose D and TH opted for ND, HH gets 5 and TH 1. Conversely, if HH chose ND and TH went for D, the payoffs are 1 to HH and 5 to TH. What is the credible equilibrium outcome in this game?Group of answer choices(ND, ND)(D, ND)(D, D)(ND, D)Either (D, ND) or (ND, D)

Consider two competitors in the hardware industry, Handy Hardware and Tradie Heaven. Both firms can simultaneously choose to Discount or Not (discount). If both firms Discount the payoffs are 15 to each firm. If both firms choose Not to discount, the payoffs are 25 to each firm. If Handy Hardware chooses Discount and Tradie Heaven chooses Not, Handy gets 30 and Tradie gets 10. If Handy Hardware chooses Not to discount and Tradie Heaven chooses Discount, Handy gets 10 and Tradie gets 30. What is the outcome of this game?Group of answer choicesBoth firms choose Discount, and this is a prisoners’ dilemma.One firm chooses Not and the other Discount.None of the other answers are correct.Both firms choose Not.Both firms choose Discount but this is not a prisoners’ dilemma.

Consider Apple and Samsung considering developing an entering a new market (by developing a new type of device). The timing of the game is that Apple gets to choose whether to Enter (E) or to Not Enter (NE). Then, observing its rival’s choice, Samsung gets to choose whether to E or to NE. If both firms enter (E) the payoff is -5 to each firm. If both firms do not enter (NE) they each get a profit of 2. If one enters and the other chooses to NE, the entrant gets 10 and the other firm gets a profit of 0. Which statement is true?Group of answer choicesIn the outcome of the credible equilibrium Apple Enters, then Samsung also Enters; there is a second-mover advantageIn the outcome of the credible equilibrium Apple Enters, then Samsung chooses NE; there is a first-mover advantageIn the outcome of the credible equilibrium Apple chooses to NE, then Samsung Enters; there is a second-mover advantageIn the outcome of the credible equilibrium Apple chooses to NE, then Samsung also chooses to Not Enter; there is a first-mover advantageNone of the above

Consider the phone handset market. Assume there are just two firms making phones – Apple and Samsung. The timing of the game is as follows. Apple first chooses whether to Launch a new phone or Wait. Observing this, Samsung then decides itself whether to Launch or Wait. The payoffs of the game are as follows. If Apple Launches, then Samsung also Launches, the returns are 12 each. If both firms Wait, the payoffs are 15 each. If Apple launches, then Samsung Waits the payoff is 30 to Apple and 20 to Samsung. If Apples Waits and Samsung then Launches the payoffs are 20 and 30 to Apple and Samsung, respectively. What is the outcome in the credible (subgame perfect) equilibrium?Group of answer choicesApple Waits, Samsung LaunchesBoth firms LaunchApple Wait, Samsung WaitsApple Launches, Samsung WaitsNone of the other answers are correct.

Consider a pricing game between Coles and Woolworths. Each firm simultaneously chooses whether to price High or Low. If both firms price Low, the payoffs are 8 to Coles and 2 to Woolworths. If both firms choose High, the payoffs are 3 to Coles and 7 to Woolworths. If Coles opts for Low and Woolworths High, Coles gets 5 and Woolworths 4. Finally, if Coles plays High and Woolworths Low, Coles gets 7 and Woolworths receives a payoff of 6. Which statement is true?Correct!  the outcome of the game is (Low, High), where Coles if playing the first strategy Low and Woolworths High; this game is a prisoners’ dilemma   the outcome of the game is (High, Low); this game is a prisoners’ dilemma   the outcome of the game is (Low, Low); this game is not a prisoners’ dilemma   the outcome of the game is (High, High); this game is a prisoners’ dilemma

Consider Apple and Samsung considering developing an entering a new market (by developing a new type of device). Each firm simultaneously makes its choice whether or not to Enter (E) or to Not Enter (NE).  If both firms enter (E) the payoff is -5 to each firm. If both firms do not enter (NE) they each get a profit of 2. If one enters and the other chooses to NE, the entrant gets 10 and the other firm gets a profit of 0. What are the Nash equilibria of the game?Group of answer choices. (NE, E) and (E, NE), where the first strategy in each parentheses is Apple’s and the second is Samsung’s(E, E)(E, NE)(E, E) and (NE, NE)(NE, E)