1. [Game Theory] but notice that two variables are missing. A multinational company (Entrant) wishes to compete in a foreign market that is currently dominated by a monopolist (Incumbent). The monopolist (Incumbent) is regulated by the government of the foreign market. Specifically, Incumbent is regulated by the government with regard to its pricing strategies: It can only charge a HIGH price or a LOW price. This makes the competitive situation for Entrant much easier; they can predict their payoffs under both pricing regimes. The game is displayed in Table 1 as a simultaneous-choice, normal-form game. Table 1: Entrant vs. Regulated Incumbent While the pricing strategies for Incumbent are only two, these are two ranges of prices. That is, the government regulatory office announces the precise prices within these ranges every quarter, and therefore the payoffs for Incumbent can only be known when the government announces the prices. Entrant estimates its payoffs under both regimes, as well as estimates of the