Discussion Questions Essay Example | Topics and Well Written Essays - 250 words

Discussion Questions - Essay ExampleWhile considering the facts given in situation (a), we came to know that both the trustys (our firm as well as competitors firm) have revealed their strategies openly and both the firms can calculate their own benefits while taking others production quantity and other strategies into account. This situation offers the optimal benefits that are driven by the strategies applied by our competitor therefore it indicates that there is a Nash vestibular sense condition (James Brickley,Clifford Smith,Jerold Zimmerman 9-5).While on other hand when we dont know exactly the strategies of our competitor and still set our preference for optimal benefits thence the condition refers to dominant strategies. Dominant strategies always lead to maximum profit whether we know our competitors strategies or not. This particular condition may be a case of dominant strategies because here we are dedicated for optimal profits (James Brickley,Clifford Smith,Jerold Zimmer man 9-5). However, since some dominant strategies fall under Nash Equilibrium and the situation satisfies the demand aspects of Nash Equilibrium we can say that this is a Nash Equilibria