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Please explain this in details and the theory as well, thanks ! Firm 1 and Firm 2 are competing for a franchise. The present value

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Please explain this in details and the theory as well, thanks !

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Firm 1 and Firm 2 are competing for a franchise. The present value of the net revenues generated by the franchise is equal to R. Each firm's probability of winning the franchise is given by its proportion of the total spent by the two firms on lobbying the local government committee that awards the franchise. That is, if 11 and 12 represent the lobby expenditures of Firm 1 and Firm 2, respectively, then Firm's 1's probability of winning is 11/01 +12) and Firm 2's probability of winning is 12/(11 +12). If each firm assumes that the other firm's spending is independent of its own, what is the equilibrium level of spending for each firm? Assume that the firms are risk neutral

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