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Suppose that two firms are competing in the marketplace and are considering whether or not to start a Loyalty Rewards Program that can be quite
Suppose that two firms are competing in the marketplace and are considering whether or not to start a Loyalty Rewards Program that can be quite costly. Firm A has a pioneering advantage over Firm B. However, the decision to start a Loyalty Reward Program is a simultaneous decision for both firms. Below is the payoff matrix indicating the strategies and payoffs associated with the strategies for both firms. Please indicate the (Standard) Nash equilibrium strategy (i.e. choices made) for both firms and the equilibrium payoffs for both firms. Please show your work or explain how you arrived at the solution and note that the payoff order is Firm A's payoff, Firm B's payoff in the
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