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6. GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Subways and Quiznos (Sandwich Style Resturants. Below is the profit payoff matrix for these two restaurants
6. GAME THEORY AND OLIGOPOLY. Profit payoff Matrix for Subways and Quiznos (Sandwich Style Resturants. Below is the profit payoff matrix for these two restaurants depending on whether they set their Chicken sandwich price HIGH or LOW TABLE 1 Quiznos LOW price Quiznos HIGH price Subway LOW price $7 million for Subway $12 million for Subway $7 million for Quiznos $5 million for Quiznos Subway HIGH price $5 million for Subway $9 million for Subway $12 million for Quiznos $9 million for Quiznos Using Table, what if any is the collusive outcome? Explain whether it will occur. Using Table, what if any is the Nash equilibrium? Explain whether it will occur
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