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SSuppose we have a duopoly with Firm A and Firm B, as shown in the prisoner's dilemma box. Assuming that the payoffs are known to
SSuppose we have a duopoly with Firm A and Firm B, as shown in the prisoner's dilemma box. Assuming that the payoffs are known to both firms, what is the likely outcome in this case? EXPLAIN Firm B Hold down Increase the Output Output (do not (cooperate) cooperate) Hold down A gets $1000, B A gets $200, B Output gets $1000 gets $1500 (cooperate) Firm A Increase the A gets $1500, B A gets $ 400, B Output (do not gets $200 gets $400 cooperate)
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