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Entering an Industry: A firm (player 1) is considering entering an established industry with one incumbent firm (player 2). Player 1 must choose whether or not to enter the industry. If player 1 enters the industry then player 2 can either accommodate the entry or fight the entry by waging a price war. Player 1's most-preferred outcome is entering with player 2 not fighting, and its leastpreferred outcome is entering with player 2 fighting. Player 2's most-preferred outcome is player 1 not entering, and its least-preferred outcome is player 1 entering with player 2 fighting.
a. Model this as an extensive-form game tree (choose payoffs that represent the preferences).
b. How many pure strategies does each player have?
c. Find all the Nash equilibria of this game.
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