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QUESTION 5 Consider the following hypothetical case. Only Pfizer and a competitor, Astra-Zeneca, have the ability to develop a COVID-19 vaccine. Both have access to

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QUESTION 5 Consider the following hypothetical case. Only Pfizer and a competitor, Astra-Zeneca, have the ability to develop a COVID-19 vaccine. Both have access to the same two promising vaccine technologies, but each company must choose one to invest in. While each firm could develop a vaccine on its own, the problem is that the fixed cost of production and risk are very high. They are therefore considering coordinating their actions through a strategic Alliance where they join forces and share cost and revenue equally. Analyse the interaction between the two firms using game theory. Present a payoff matrix to model the situation and analyse it for Nash equilibrium. What can either of these firms do to make their best, most-preferred outcome more likely

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