medical arms race and game theory in economics

Box 14-1 on page 288 of FGS describes how game theory helps explain the “medical arms race” among hospitals up to about 20 years ago.
(1) Explain what a “dominant strategy” is in game theory. 
(2) Using Box 14-1, replace the entry in the first row, second column with (125, -50). Does A have a dominant strategy? Does B? What is the solution to this game? 
(3) Why is the medical arms race less a problem today than it once was? 
(Tip: In order to determine what strategy a “player” should adopt, the player asks, “If B adopts, then what should I do? If B does NOT adopt, then what should I do?” Both players in the game approach the selection of their strategy in this way.)

 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

"Is this question part of your assignment? We will write the assignment for you. click order now and get up to 40% Discount"