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The Colours-R-Us Printing Co. must decide whether to purchase a new machine which will allow it to print labels for its only customer, The Big
The Colours-R-Us Printing Co. must decide whether to purchase a new machine which will allow it to print labels for its only customer, The Big Store, at lower cost. The Big Store must make an offer to Colours-R-Us to purchase labels. The offer may be either a low price or a high price. Payoffs are as follows: What are the pure strategy Nash equilibrium of the game? (select all correct Nash Equilibria) The Big Store decision High Price Low Price High price Low price {Low Price: Purchase} {High Price; Purchase} {Low Price: Not Purchase] {High Price: Not Purchase] Coloum-R-Us decisionPayo's {88, CRU} Purchase {25, 25} Purchase {40, 0} Not purchase {5, 15} Not purchase {20, 10}
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