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4) Consider the following entry game. What is the outcome of this game? Firm 1 Entry deterrence (1) 11 N1 Firm 2 Entry (E) /

4) Consider the following entry game. What is the outcome of this game?

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Firm 1 Entry deterrence (1) 11 N1 Firm 2 Entry (E) / no entry (N) E2 N2 E2 N2 Firm 1 5 Passive(P)/Aggressive (A) P1 A1 2 P1 A1 2 2 5 3 7/2 2 N 2

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