Game Theory III: Finding Nash Equilibrium When One Firm Doesn't Have a Dominant Strategy

[@kingofthecosmos3253]

Nice video, watching this video before AP micro test

[@ТимурМамасалиев-ц5у]

Cool example!

[@suryansh8069]

Great

[@EconomicsinManyLessons]

Thank you!

[@eeshaimran7694]

what will be the cooperative nash equilibrium and is there prisoners dilema in this case?

[@bogush2]

Cooperative outcome would be for Target to leave store unchanged and for walmart to refurbish since it gives highest total payoff (195) However, it is not prisoner's dilemma since in cooperative outcome target gains less then in Nash equilibrium, and it is necessary that both sides gain more in cooperative outcome for it to be considered a prisoner's dilemma Hope it helps 🙂