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1 . 2 Firm 1 and Firm 2 play an Advertising game in the market for good X . The payoff matrix for the good
Firm and Firm play an Advertising game in the market for good X The payoff matrix for the good as follow:
tableFirm Firm No advertisement,AdvertisementNo advertisement,:$ millions,: $ millions:$ triu:$ triuAdvertisement:$ millions,:$ millions:$ millions,:$ millions
If each firm behaves as an irrational person, what is firm ls decision? What is firm s decision? Explain
What value of makes you feel that the following two choices are the same:
$ and P;;$ Explain. What conclusion do you draw from your choice?
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