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A four by four matrix with Wal-Mart on the vertical axis versus Target on the horizontal axis. The prices are marked as USD 200 and
A four by four matrix with Wal-Mart on the vertical axis versus Target on the horizontal axis. The prices are marked as USD 200 and USD 150 against Wal-Mart and Target. The data for USD 200 each reads, Wal-Mart earns USD 10,000 profit and Target earns USD 10,000 profit. When Wal-Mart is USD 200 and Target is USD 150, Wal-Mart earns USD 5,000 profit and Target earns USD 15,000 profit. When Wal-Mart is USD 150 and Target is USD 200, Wal-Mart earns USD 15,000 profit and Target earns USD 5,000 profit. When Wal-Mart is USD 150 and Target is USD 150, Wal-Mart earns USD 7,500 profit and Target earns USD 7,500 profit. Suppose that Walmart and Target are selling Sony flat-screen computer monitors for a price of $150 or $200 each. Based on the information in the payoff matrix, what is the dominant strategy? ANSWER Unselected Both firms will charge $150. Unselected Both firms will charge $200. Unselected Walmart will charge $150, and Target will charge $200
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