Which two firms attempt to collude under the bertrand model

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Reference no: EM131204148

In a duopoly where possible options are to retain the collusive price (collude) or to lower the price in attempt to increase the firm's market share (cut). Consider the following payoff matrix for a game in which two firms attempt to collude under the Bertrand model: The payoffs are stated in terms of millions of dollars of profits earned per year. Explain what the Nash equilibrium outcome would be for this game.

Reference no: EM131204148

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