Question: Consider the following payoffs in a situation where the two firms have to choose simultaneously. (a) How much would Firm A pay to go first?

Consider the following payoffs in a situation where the two firms have to choose simultaneously.

(a) How much would Firm A pay to go first?
(b) How much would Firm B pay to go first?
(c) Can you set up the payoff so that there is no first mover advantage?

Firm B Strategy Yes Firm A: S30 Fim B: S10 Firm A: S20 Firm B: $15 No Firm A: S20 Firm B: S15 Fim A: $2 Firm B: S4 Y es Fim A No

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