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2. Suppose Firm 1 and Firm 2 can choose either 'Cooperate' or 'Don't Cooperate'. They play a simultaneous game with the payoffs below. What are
2. Suppose Firm 1 and Firm 2 can choose either 'Cooperate' or 'Don't Cooperate'. They play a simultaneous game with the payoffs below. What are possible values for A and B if (Cooperate, Don't Cooperate) is one of the Nash equilibria? Briefly explain your reasoning. (18 points) Firm 2 Cooperate Don't Cooperate Firm 1 Cooperate 2, 1 A , B Don't Cooperate 3, 0 0, 2
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