Suppose that the constituent game shown in Figure 13.3 is played exactly twice instead of many times.
Question:
Suppose that the constituent game shown in Figure 13.3 is played exactly twice instead of many times. Would that change the behavior of the incumbent?
Figure 13.3
Transcribed Image Text:
Potential Rival's Incumbent's Profits Pay Decision Response (T,, T;) Accommodate (3, 3) Enter Incumbent Fight (-1, 1) Entrant Do not enter (0, 10)
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Managerial Economics And Strategy
ISBN: 9780134899701
3rd Edition
Authors: Jeffrey M. Perloff, James A. Brander
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