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Suppose that Pentax and Leica are the only camera makers that can invest in a new technology that would revolutionise the industry. The following matrix

Suppose that Pentax and Leica are the only camera makers that can invest in a new technology that would revolutionise the industry. The following matrix shows the payoffs (in millions of euros) from investing in this technology:
Leica
I Pentax Invest Do Not Invest
\table[[,Invest,Do Not Invest],[,,-80,,0],[Do Not Invest,-80,,560,0],[,,560,,],[,0,,,]]
a. If both firms move simultaneously, does either firm have a dominant strategy? Explain.
b. What is the Nash equilibrium of both firms move simultaneously?
c. The German governments commits to paying Leica a lump-sum subsidy of 100 million euro if it invests in this technology. What is the Nash equilibrium?
d. If Leica does not receive a subsidy but has a technical advantage over Pentax concerning this technology and has a head start (i.e. moves first), what is the Nash equilibrium?
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