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In: Economics

Consider the following pricing game between Staples and Dunder-Mifflin. The payoffs below are profits presented in...

  1. Consider the following pricing game between Staples and Dunder-Mifflin. The payoffs below are profits presented in $100,000’s, with the order [Dunder-Mifflin, Staples].

Staples

Low

Medium

High

Dunder-Mifflin

Low

1, 0

1, 2

0, 1

Medium

0, 0

2, 1

3, 3

High

1, 2

1, 1

0, 1
  1. Find all Nash equilibria.
  2. Provide an argument for selecting among those equilibria.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
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