You've given a textbook example of a signaling game here, where revealing your dominant strategy is also a signal to your competitors about your intentions and capabilities. It's all about commitment and credibility. If Company A's premium offer is credible and B believes A can and will follow through, B …

A Nash Equilibrium is a situation in a strategic interaction where no player can benefit by changing their strategy, assuming the other players don’t change theirs. It’s like playing rock-paper-scissors, and you’ve all agreed that if you play rock at the same time, you’ll repeat the game. Once you all …

The Stag Hunt represents a situation of social cooperation. One example is international agreements on climate change, like the Paris Agreement. Countries must work together to reduce emissions, which is the 'stag', but they might defect and prioritize their own economic growth, the 'hare'. Trust is key because the success …