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Now suppose Bernie advertises that if a customer buys a DVD player from him for $300 and discovers (s)he can buy it cheaper at Manny's,

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Now suppose Bernie advertises that if a customer buys a DVD player from him for $300 and discovers (s)he can buy it cheaper at Manny's, Bernie will give the customer a rebate equal to twice the price difference (so, for example, if Manny charges $275, Bernie will give the customer a rebate of ($300-$275) x 2 = $50). Suppose Manny advertises a similar policy. b. Show that it is now a Nash equilibrium for both Bernie and Manny to charge $300, and that both make a positive profit

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