26 Jul WHAT ADVANTAGES DOES IT HAVE OVER SIMPLY ASSUMING SAY COURNOT BEHAVIOR?
1. A buildup of nu Show more These are 2 short answers questions that I need help with. Please and Thank You! 1. A buildup of nuclear weapons between two or more nations appears both counterproductive and counterintuitive. But one theory Mutually Assured Destruction argues that it is to a nations benefit to amass an arsenal of weapons so vast that their use could destroy the whole world. Using a prisoners dilemma matrix with a Nash equilibrium show how that Country A choosing a strategy of spending vast amounts on nuclear weaponry (call it High) enough to destroy all of society rather than a smaller amount (call it Low) sufficient for self-defense only is a dominant strategy and a deterrent over Country B. 2. Why do you think that game theory has become the preferred method of analyzing oligopolistic markets? What advantages does it have over simply assuming say Cournot behavior? Show less
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