Nash equilibrium c. Most favoured customer clause d. Mixed strategies.3. Explain the relationship…

1. Explain the differences between the Cournot and Bertrand models of competition; why are these models not true models of interdependent behaviour?

2. Explain the following terms: a. Dominant strategy b. Nash equilibrium c. Most favoured customer clause d. Mixed strategies.

3. Explain the relationship between strategic moves, commitment and credibility.