Saudi Arabia and Russia simultaneously must decide their oil production for the next quarter. Both countries can either choose High or Low output. If both opt for High, Russia gets a payoff of 5 and Saudi Arabia 7. If Russia opts of Low and Saudi Arabia High, the payoffs are 2 for Russia and 11 for Saudi Arabia. If Russia chooses High and its Saudi rival Low, the payoffs are 8 for Russia and 3 for Saudi Arabia. Finally, if both opt for Low, the payoffs are 6 and 9 to Russia and Saudi Arabia, respectively. Which statement is FALSE?Group of answer choicesThis game is a version of the prisoners’ dilemma.Saudi Arabia has a dominant strategy to play H.The Nash equilibrium is (H, H); the dominant strategy equilibrium is (H, H)Russia has a dominant strategy to play H.The Nash equilibrium is (H, H); the dominant strategy equilibrium is (L, L)

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?Group of answer choicesthe outcome of the game is (Low, High), where Coles if playing the first strategy Low and Woolworths High; this game is a prisoners’ dilemmathe outcome of the game is (High, Low); this game is a prisoners’ dilemmathe outcome of the game is (Low, Low); this game is not a prisoners’ dilemmathe outcome of the game is (High, High); this game is a prisoners’ dilemmathe outcome of the game is (High, High); this game is not a prisoners’ dilemma

Dell and HP must both simultaneously set prices for their new laptops. They can both either choose to set a Low or High price. The payoffs are as follows. If both firms set a Low price, Dell gets 5 and HP 6. If both firms set a High price, the payoffs are 7 to Dell and 8 to HP. If Dell sets a High price and HP chooses Low, the payoffs are 3 to Dell and 10 to HP. If Dell sets a Low price and HP opts for High, the payoffs are 9 to Dell and 1 to HP. Which statement is true?Group of answer choicesEach player has a dominant strategy to choose High; the dominant strategy equilibrium outcome is not a prisoners’ dilemmaIn the outcome of this game HP gets 6None of the other answers are correct.Each player has a dominant strategy to choose High; the dominant strategy equilibrium outcome is a prisoners’ dilemmaIn the outcome of this game Dell gets 7

BHP and Rio simultaneously choose to set either a LOW or HIGH level of iron ore production. The payoffs are as follows. If both choose LOW, the payoffs are (30, 20) to BHP and Rio, respectively. If BHP chooses LOW and Rio HIGH, the payoffs are (35, 30). If BHP opts for HIGH and Rio LOW the payoffs are (40, 10). And, lastly, if BHP plays HIGH and Rio HIGH, the payoffs are (25, 20). Which statement is true?Group of answer choicesThe Nash equilibrium is (LOW, LOW), where the first strategy in the parentheses is BHP’s and the second Rio’s.The Nash equilibrium is (LOW, HIGH)The Nash equilibrium is (HIGH, LOW)The Nash equilibrium is (HIGH, HIGH)The Nash equilibria are (LOW, LOW) and (HIGH, HIGH)

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 9 to each firm. If both firms choose High, each firm gets 7. If one firm chooses Low and the other High, the Low-priced firm gets 1 and the firm that opted for High gets 10. Which statement is true?Group of answer choicesthe outcome of the game is (High, High); this game is not a prisoners’ dilemmathe outcome of the game is (High, High); this game is a prisoners’ dilemmathe outcome of the game is (Low, Low); this game is not a prisoners’ dilemmathe outcome of the game is (Low, Low); this game is a prisoners’ dilemmanone of the above

Consider a game in which Myer and DJs simultaneously choose whether to advertise (ADV) or not advertise (NOT). If both firms adopt NOT, the payoffs are (6, 10) to Myer and DJs, respectively. If both firms choose ADV, the payoffs are (5, 6). If Myer plays ADV and DJs NOT, the payoffs are (8, 5). Finally, if Myer plays NOT and DJs ADV the payoffs are (4, 12). Which statement is true?Group of answer choicesThe Nash equilibrium is (NOT, NOT); this game is a prisoners’ dilemma.The Nash equilibrium is (ADV, NOT); this game is a prisoners’ dilemma.The Nash equilibrium is (ADV, ADV); this game is a prisoners’ dilemma.The Nash equilibrium is (NOT, ADV); this game is a prisoners’ dilemma.The Nash equilibrium is (ADV, ADV); this game is not a prisoners’ dilemma.