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The following matrix shows the outcomes for Ford and Chevrolet when they do or do not offer rebates on their best-selling trucks, the F-150 and
The following matrix shows the outcomes for Ford and Chevrolet when they do or do not offer rebates on their best-selling trucks, the F-150 and the Silverado. A Payoff matrix table for Ford and Chevrolet is shown. If Chevrolet does not offer a rebate and Ford does not offer a rebate, then Chevrolet earns a $10 billion profit and Ford earns a $10 billion profit. If Chevrolet does not offer a rebate and Ford offers a $3,000 rebate, then Chevrolet earns a $6 billion profit and Ford earns a $14 billion profit. If Chevrolet offers a $3,000 rebate and Ford does not offer a rebate, then Chevrolet earns a $14 billion profit and Ford earns a $6 billion profit. If Chevrolet offers a $3,000 rebate and Ford offers a $3,000 rebate, then Chevrolet earns a $7 billion profit and Ford earns a $7 billion profit. If Chevrolet and Ford collude, then: neither firm offers a rebate. both offer rebates. Chevrolet offers a rebate and Ford does not. Ford offers a rebate and Chevrolet does not
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