2024, Set 1, Question 3 · Short · 5 points
Game theory between two car makers
Use a payoff matrix for two vehicle producers to find a best response, check for a dominant strategy, and test whether a pair of choices is a Nash equilibrium. Then find combined profit after a merger and the new equilibrium when one payoff falls.
Lessons this question draws on
1 Read the question
The question is College Board's, from the 2024, Set 1 exam. It starts on page 5 of the PDF.
2 Write your answer
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3 Score it
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Scoring guidelines (PDF, page 6) What the exam readers saw (Chief Reader report)
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