ECON 208: Problem Set 7 1) Consider the simultaneous game game in which player A chooses one of two actions, Up or Down, and player B chooses one of two actions, Lef t or Right. The game has the following payoff matrix, where the first payoff in each entry is for player A and the second is for player B.

\fFigure 2: Investment-Entry Game Incumbent Invest Not Invest Newbie Newbie Enter Leave Enter Leave 3,-2 5,0 4,1 6,0