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In the game below between two manufacturers, Volga Bus - High Price Volga Bus - High Price SO $2,000,000 $1,500,000 $2,000,000 GMB - Low Price

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In the game below between two manufacturers, Volga Bus - High Price Volga Bus - High Price SO $2,000,000 $1,500,000 $2,000,000 GMB - Low Price GMB - High Price Volga Bus - Low Price Volga Bus - Low Price $750,000 $1,500,000 $750,000 $0 GMB - Low Price GMB - High Price Figure 9.5 O Volga Bus does not have a dominant strategy. O GMB has a dominant strategy. O Volga Bus will choose to price low no matter what GMB does. O Volga Bus will choose to price high no matter what GMB does.

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