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Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff

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Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. Firm A Stays in business Sells business Firm B Stays in business A gains $90 million A gains $70 million B gains $70 million B gains $40 million Sells business A gains $40 million A gains $10 million B gains $80 million B gains $30 million Refer to Table. The dominant strategy for firm A is to stay in business and there is no dominant strategy for firm B causing a $80 million gain for firm B. for both firms is to stay in business causing a $70 million gain for firm B at the Nash equilibrium. for both firms is to not stay in business causing a $10 million gain for firm A at the Nash equilibrium. for firm B is to not stay in business and there is no dominant strategy for firm A causing a $40 million gain for firm A at the Nash equilibrium

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