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In the game depicted below, two firms must decide whether or not to enter a new market or to stay out. The payoffs are in
In the game depicted below, two firms must decide whether or not to "enter" a new market or to "stay out". The payoffs are in billions of dollars. What is the likely outcome of the game? Explain your answer. (8 percent) FIRM 2 Enter Stay out Enter -10,-10 100,0 FIRM 1 Stay out 0, 100 0,0
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