Suppose a game is similar to the game in question 12, except that when the firm provides
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Suppose a game is similar to the game in question 12, except that when the firm provides a low quality service and the customer buys it, then the firm has a payoff of 1 (instead of 4) and the customer’s payoff is zero. Given this game structure, answer the following questions:
i. Draw the payoff matrix of this quality game.
ii. Determine the equilibrium in this game.
iii. Is the equilibrium same as in the case with question 12?
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