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Suppose that two firms, Lucky Bird and Full Coop, are the only sellers of seitan buffalo wings in some hypothetical market. The following payoff matrix
Suppose that two firms, Lucky Bird and Full Coop, are the only sellers of seitan buffalo wings in some hypothetical market. The following payoff matrix gives the profit (in millions of dollars) earned by each company depending on whether or not it chooses to advertise: Full Coop Advertise Doesn't Advertise Lucky Bird Advertise 9, 9 15, 3 Doesn't Advertise 3, 15 11, 11 For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of $15 million, and Lucky Bird will make a profit of $3 million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both profit-maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of $ million if Full Coop advertises and a profit of $ million if Full Coop does not advertise. If Lucky Bird chooses not to advertise, it will earn a profit of $ million if Full Coop advertises and a profit of $ million if Full Coop does not advertise. If Full Coop advertises, Lucky Bird makes a higher profit if it chooses . If Full Coop doesn't advertise
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