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What is the mixed strategy nash equilibrium for the game

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Reference no: EM131614093

Que.

Suppose that two firms face the following payoff matrix:

 

 

         Firm 2

                                       Firm 1

 

         Low price

         High price

      Low price

         (2, 0)

             (1, 2)

      High price

         (0, 7)

             (6, 6)

Given these payoffs, Firm 2 wants to match firm 1's price, but firm 1 does not want to match firm 2's price. What is the mixed strategy nash equilibrium for the game?

Reference no: EM131614093

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