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Consider the following extensive form of a game. The first number is the payoff of the (potential) Entrant and the second that of Incumbent. image.png

Consider the following extensive form of a game. The first number is the payoff of the (potential) Entrant and the second that of Incumbent. image.png Group of answer choices The maximum the incumbent is willing to bribe the Entrant to keep it OUT is $3. The threat by the Incumbent to play FIGHT in case Entrant chooses In is credible. The minimum bribe the Entrant is wiling to accept to stay OUT is $1. There can be no negotiation between the Entrant and the Incumbent to achieve the efficient solution

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