1.12 Two firms face the following payoff matrix:

Given these profits, Firm 2 wants to match Firm 1’s price, but Firm 1 does not want to match Firm 2’s price. Does either firm have a dominant strategy?
Does this game have a unique, pure-strategy Nash equilibrium? Identify all pure- and mixed-strategy Nash equilibria. (Hint: See Solved Problem 14.1.) A

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Firm 2 Low Price High Price 2 0 Low Price Firm 1 0 High Price 2 7 1 6 6