following the pricing game in which Greyhound and Trailways simultaneously choose the price of a seat on their buses from Philly to Allentown. Their choices are: Greyhound: $10, $20, or $50 Trailways: $30 or $40 1. Assume there are 100 customers who will split evenly between the bus lines if the prices are within $10 of each other. If the prices are more than $10 apart, then 70 customers will take the cheaper seats and 30 will take the more expensive seats. Write down the payoff matrix for this game. Remember, payoff = revenue = (price per seat)x(number of customers) 2. Write down a weak-dominance table to compare the strategies “charge $30” versus “charge $40” for Trailways. 3. Choose the correct answer from your work in Question 2. choices Below – “charge $30” weakly dominates “charge $40” for Trailways -“charge $40” weakly dominates “charge $30” for Trailways -There is no relation of weak dominance between “charge $30” and “charge
4. Choose the correct answer about the pricing game. Group of answer choices – The pricing game has a dominated strategy solution when Greyhound charges $50 and Trailways charges $30 – The pricing game has a dominated strategy solution when Greyhound charges $50 and Trailways charges $40 – The pricing game has a dominated strategy …