other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to

30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the

confessor will receive 15 years and the one who stayed silent will receive 35 years. Table 10.7 below

represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If

Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? Does Bill have

a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Jane’s sentence first (in years),

and Bill's sentence second.)

Jane

A

B

Bill

A (30, 30)

(15, 35)

B (35, 15)

(20, 20)

TABLE 10.7
258 10 • Problems

Access for free at openstax.org
Monopoly and Antitrust Policy

11

FIGURE 11.1 Oligopoly versus Competitors in the Marketplace Large corporations, such as the natural gas
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