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Q2 Lawyers II sequential move Would the outcome from the Lawyers I game (Q1 above) be different if Firm 1 could commit to its decision
Q2 Lawyers II sequential move Would the outcome from the Lawyers I game (Q1 above) be different if Firm 1 could commit to its decision before Firm 2 made its own decision? Explain your reasoning and assumptions.Firm 1 has contracted Firm 2 to provide information technology services. However, a disagreement about the interpretation of a clause in the contract means that the two rms need to negotiate. Each rm must decide whether to bring its lawyer to the negotiation. The payoff from each outcome is given in the following matrix. Firm 2 Lawyer No lawyer Firml Lawyer 50, an N. 1am . State each player's best response. . Identify a dominated strategyr for each player. . 'What is the Nash equilibrium outcome? . Is that outmme socially efcient? Explain your reasoning and discuss the implications of your answer. rh-WMIl
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