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Question from the given payroll matrix where the payoff

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Question: From the given payroll matrix where the payoff refer to profit that firm A and B earn from their possible strategies, determine (a) the strategies of the firm (b) where will the firm end up in the matrix equilibrium (c) whether the firm face the prisoner's dilemma.

                                                                                   Firm B

                                                             Enter                                 Don't; Enter

    Resist Entry                                         (5,6)                                   (13,9)

                                 Firm A

Don't Resist Entry                                    (4,12)                                 (12,9)

 

 

 

Reference no: EM13358456

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