Suppose a government agency is planning to build a new office complex in a small town for which it needs to hire both an architect and a construction company.There is only one reputed architect and only one reliable construction company in town.It would be very expensive for the local government to hire workers from out of town, if the local architect and the local construction company decide not to take up the government project.Both the architect and the construction company are not allowed to interact with each other regarding their decision to work for the new office complex and are allowed to give their final decision only once. The table below shows the pay-offs, or the profits (in thousands), that each company will accrue if they decide to work or not for the government.What is the dominant strategy in this game?

MCQs on major topics and theories in the field of Industrial Organization. Topics include: Market structure analysis and the strategic behaviors of competing firms, including (but not limited to) product differentiation, collusion, price discrimination, pricing strategy, non-price discrimination (i.e. advertising), horizontal mergers, vertical integration, and vertical restraints.