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Suppose O2 and Vodafone are the only two telecommunications companies in UK. Both companies are considering whether or not to stop offering unlimited data plans.

Suppose O2 and Vodafone are the only two telecommunications

companies in UK. Both companies are considering whether or

not to stop offering unlimited data plans. Each company has two

strategies: stop or don't stop. The first entry in the brackets is the payoffs

of O2 and the second entry is the payoffs of Vodafone, both in $million.

What will be the dominant strategies of O2 and Vodafone and what will

be the Nash equilibrium? Explain your answers.

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