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Refer to the normalform game of price competition in the accompanying payoff matrix. The figure presents information for a oneshot game. Firm B Low Price
Refer to the normalform game of price competition in the accompanying payoff matrix. The figure presents information for a oneshot game. Firm B Low Price High Price Low Price 8,8 26, 4 High Price d, 28 12J 12 Suppose the game is infinitely repeated, and the interest rate is 10 percent. Both firms agree to charge a high price, provided no player has charged a low price in the past. If both rms stick to this agreement, then the present value ofrm A's payoffs is
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