Safeshop and Bertsons must each decide how much to price their turkeys in their

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Safeshop and Bertsons must each decide how much to price their turkeys in their flyers that are published in the week before Thanksgiving. They are both choosing between a low price and a high price. The payoff table below shows the profit outcomes for both firms: Suppose the pricing decision between high and low will be made simultaneously. Answer the following questions: Safeshop's dominant strategy is low (high, low, neither: it has no dominant strategy) Bertsons's dominant strategy is neither (high, low, neither: it has no dominant strategy). The Nash equilibrium for this simultaneous decision is for to Safeshop play low and Bertsons to play high. Now suppose that Safeshop always delivers it's advertisement to the publisher before Bertsons, and somehow Bertsons always gets to see it before they submit their own ad. Construct the game tree for the sequential game in which Safeshop moves first by filling in the blanks on the next page using the information in the payoff table. For the sequential game in part d, use the roll back method to find the equilibrium decision path. Circle this path. Safeshop earns profit of $ and Bertsons earns profit of $ .Suppose instead that Bertsons makes the first move in a sequential decision game. Construct the game tree below for the sequential game in which Bertsons moves first by filling in the blanks on the next page using the information in the payoff table. For the sequential game in part f, use the roll back method to find the equilibrium decision path. Safeshop earns profit of $ and Bertsons earns profit of $ . (Safeshop, Bertsons, neither firm, both) has a first-mover advantage? (Safeshop, Bertsons, neither firm, both) has a second-mover advantage? In this game we would expect (Safeshop, Bertsons, cannot tell) to move first. Safeshop moves first Bertsons moves first

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