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The following payoff diagram shows profits for a year for companies A & B. Company A Company B Price Strategy Low High Low $0, $0

The following payoff diagram shows profits for a year for companies A & B.

Company A
Company B

Price Strategy

Low

High

Low

$0, $0

$11, ($2)

High

($2), $11

$6, $6

Based on this payoff diagram, determine the optimal pricing strategy in a:

1/One-shot simultaneous game.

2/Multi-shot repeating game with a 60% chance that the game would end each year.

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