Question
Two firms (A and B) compete in a market and are faced with a decision regarding using sales agents.The payoffs are the profits of each
Two firms (A and B) compete in a market and are faced with a decision regarding using sales agents.The payoffs are the profits of each firm.If A uses sales agents and B does not, A gets 30 and B gets 40.If both use sales agents, A gets 20 and B gets 35.If A does not use sales agents but B does, then A gets 30 and B gets 40.If neither uses sales agents, then A gets 35 and B gets 50.Assuming a one-shot simultaneous game with no communication/coordination, where will the game end?
Group of answer choices
A will not use sales agents, but B will use sales agents.
A will use sales agents, but B will not use sales agents.
A will not use sales agents, and B will not use sales agents.
A will use sales agents and B will use sales agents.
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