7:31PM Wed Apr 10 59% O moodle.concordia.ca 1. Consider the following game played between players 1 and 2. Player 1 chooses A, B or C while player 2 chooses from a,b,c. Choices are made independently and simultaneously. Payoffs are presented below. (30 pts) N a b C A 6,7 5,4 0,0 1 B 4,5 7,6 0,-1 C 0,0 -1,0 1,1 a) Find all of the pure strategy Nash equilibria for this game. b) If we allow these players to talk to each other before the game what would you anticipate to be the outcome(s) in this game. Explain. c) If player 2 is given the ability to move first what would you anticipate to be the outcome(s) in this game? Explain. 2. Consider the following entry deterrence model. An entrant makes an initial decision either to enter or not into some industry. The incumbent observes this decision and subsequently de- cides either to compete aggressively with the entrant, or to accommodate the entrant and not compete aggressively. Suppose that aggressive competition pays both firms a profit of -1. Non aggressive competition pays each firm a profit of 2. If the entrant stays out then the entrant