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( Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers ) Payoff Matrix for Firms X and Y . If Steve and Savannah wish to
Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers Payoff Matrix for Firms X and Y If Steve and
Savannah wish to maximize their joint profits:
each firm should choose to cooperate.
Savannah should choose a best response, and Steve should not.
each should consider its specific situation before choosing a strategy, since strategies also entail costs.
each should choose a strategy opposite the other's choice.
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