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Consider Wal-Mart and Target as a duopoly for the market of Blu-Ray sales. Both stores must choose whether to charge $30 or $17. Their payoffs

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Consider Wal-Mart and Target as a duopoly for the market of Blu-Ray sales. Both stores must choose whether to charge $30 or $17. Their payoffs are as follows: Target Prices $30 $17 W: $6,000 W: $2,000 $30 Wal-Mart T: $6,000 T: $15,000 W: $15,000 W: $5,000 T: $2,000 $5,000 $17 What is the Nash equilibrium? Wal-Mart chooses $30, and Target chooses 517 Wal-Mart chooses $17 and Target chooses $30 Wal-Mart chooses $30, and Target chooses 530 Wal-Mart chooses $17 and Target chooses $17

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