What actions will the firms take and what is the outcome

Reference no: EM13220689

Two firms dominate the market for surgical sutures and compete aggressively with respect to research and development. The following payoff table depicts the profit implications of their different R&D Strategies.

A) Suppose that no communication is possible between the firms; each must choose its R&D strategy independently of the other. What actions will the firms take, and what is the outcome?

B) If the firms can communicate before setting their R&D strategies, what outcome will occur?

Reference no: EM13220689

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