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Target and Walmart are trying to decide how to price their Air Fryers for an upcoming Labor Day sale. They will either keep prices the
Target and Walmart are trying to decide how to price their Air Fryers for an upcoming Labor Day sale. They will either keep prices the same ("keep same") or put the product on sale ("put on sale"). Their respective payoffs depend on how the firm prices their product. In other words, Target and Walmart are two firms in a simultaneous game. The payoffs associated with each outcome are given below. Note that "M" means "million", e.g. 10M = $10 Million. Target's payoffs are to the left of the comma and Walmart's are to the right of the comma. Walmart Keep Same Put on Sale Keep Same 10M, 10M 1M, 12M Target Put on Sale 12M, 1M 8M, 8M What is the Nash Equilibrium of the above game
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