Consider a market with a single incumbent firm. Suppose another firm has the potential to enter the market and compete with the incumbent firm. First, the potential entrant decides whether or not to enter. If there is no entry, then the incumbent firm's profit is 10 and the potential entrant's profit is 0. If there is entry, then the incumbent decides to either "accomodate" or "fight" (drive out of the market) the potential entrant. "Accommodation" leads to an incumbent profit of 1 and a potenti