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Firm B Strategy Advertise Don't Advertise Firm A Advertise 0,0 50, -1 Don't Advertise -1, 50 10, 10 Two cigarette manufacturers play the following simultaneous-move
Firm B Strategy Advertise Don't Advertise Firm A Advertise 0,0 50, -1 Don't Advertise -1, 50 10, 10 Two cigarette manufacturers play the following simultaneous-move billboard advertising game. Profit payoffs for both companies are shown in the normal form game below. There is a 25 percent chance that the government will ban cigarette sales in any given year. If they collude and Firm A cheats, how much will Firm A earn in period 1? (Enter a numerical value as your answer with no decimal points. For example, if your answer is "one hundred" you need to type in "100"). A/ What is the probability that the game will end? (Enter a numerical value as your answer with no decimal points. For example, if your answer is "one hundred percent" you need to type in "100"). A/What is the probability that the game will end? [Enter a numerical value as your answer with no decimal points. For example. if your answer is "one hundred percent" you need to type in "1DCI"}_ \"Ex D If they collude and Firm A cheats. what will be the profit for Firm A for all periods? [Enter a numerical value as your answer with no decimal points. For example. if your answer is "one hundred" you need to type in "'.'LDU"}. *Ey D If they collude. cooperate and Firm A does not cheat. what will he the profit for Firm A for all periods? [Enter a numerical value as your answerwith no decimal points. For example. if your answer is "one hundred" you need to type in "1DU"}_ \"Ex D Does Firm A have an incentive to cheat? {Type "yes" or "no" for your response). \"v D
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