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2. Consider the following payoff matrix for Firm i3. and Firm B. Firm :1 sells ski equipment and Firm B sells ski clothing (complementary goods).

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2. Consider the following payoff matrix for Firm i3. and Firm B. Firm :1 sells ski equipment and Firm B sells ski clothing (complementary goods). These two firms are choosing the location of their stores in a mall and will increase profits if they choose to locate in the same corner. There are two available spots in both the NW corner and the SW corner of the shopping mall. Determine whether Firm and Firm B have a dominant strategy. Work through the equilibrium mixed strategy and find the expected payoffs. Firm B NW Corner (q) SW ICorner {lq) Firm A NW Corner (p) 50, 30 20, 15 SW Corner (1p) 20, 15 35, 45

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