Firm A Firm B High 120 100 High Low 100 120 B High 110 90 Low A High Low 80 110 MOT High 100 60 High Low 50 120 B High 100 50 Low A Low 60 70A pair of duopolists, Firm A and Firm B, manufacture seasonal toys. Both are planning their pricing strategies for the coming holiday season. The rms will choose between a low price (Low) and a high price (High). Firm A has a more exible production and distribution system than Firm B and is therefore able to begin the season with one pricing strategy and then adopt a different strategy in midseason. While Firm B is unable to change its strategy in midseason, it can delay making a choice until after Firm A has announced its prices for the rst part of the season. The rms' alternatives and payoffs are displayed in the decision tree diagram. In the rst round, rm Awill choose as a strategy. In the second round, rm B will choose as a strategy. In the third round, rm Awill choose as a strategy. Firm A's payoff will be , and rm B's payoff will be