Irene's Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie's Ice-cream. If she enters the market, Mattie's can either accommodate her and share his 10 million in profits equally with Irene, or fight her and cause a 5 million loss for each in a price war.

In a sequential game, if Irene decides to enter the market, what would be Mattie's best response?

Accommodate

Shut down

Fight

Run away

What would the most likely outcome be in this sequential game?

Enter, Accommodate

Do not enter, Fight

Do not enter, Accommodate

Enter, Fight