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

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 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 each firm. If both firms choose High, each firm gets 12. If one firm chooses Low and the other High, the Low-priced firm gets 14 and the firm that opted for High gets 2.In this game:Group of answer choicesColes has a dominant strategy to choose HighColes has a dominant strategy to choose LowColes does not have a dominant strategyColes does have a dominant strategy, but it depends on what Woolworth chooses to do.None of the above

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 20 and Tradie gets 10. If Handy Hardware chooses Not to discount and Tradie Heaven chooses Discount, Handy gets 10 and Tradie gets 20. What is the outcome of this game? Group of answer choices One firm chooses Not and the other Discount. Both firms choose Discount, and this is a prisoners’ dilemma. There is no dominant strategy equilibrium None of the other answers are correct. Both firms choose Discount but this is not a prisoners’ dilemma.

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.

Consider the strategic interaction between Coles and Woolworths considering entering and establishing a store in a country town. Coles gets to make its decision first. It can Enter (E) or Not Enter (NE). This choice is observed by Woolworths that then chooses either E or NE. If both firms opt for E they each get -5. If both choose NE, the payoff to each is 5. If Coles opts for E and Woolworths NE Coles gets 20 and Woolworths 0. Conversely, if Coles goes NE and Woolworths E, Woolworths gets 20 and Coles 0.If possible, in this strategic environment, you would prefer to be                because there is a                .Group of answer choicesColes; first-mover advantage.Woolworths; first-mover advantage.Coles; second-mover advantage.Woolworths; second-mover advantage.either Coles or Woolworths; either first-mover or second-mover advantage.