You want to collude, but can you trust the other firm to set prices high?

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Presentation transcript:

You want to collude, but can you trust the other firm to set prices high?

Step One: Is there a dominant strategy?

Type of Advertisements and Opinion Polls Game #1 Negative Ads Positive Ads 15-point increase, 15- point increase 5- point increase, 25- point increase 25- point increase,5- point increase 7- point increase, 7- point increase

Step Two: Is there a Nash Equilibrium?

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Superheroes- Villains Caught Game #3 Day Shift Night Shift 8,7 4,4 5,4 7,3

Who to draft first, Quarterback or Running Back? Game #4 Quarterback Running Back 11 wins,10 wins 4 wins,5 wins 6 wins,4 wins 10 wins,11 wins