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Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end
Two firms are in the chocolate market. Each can choose to go for the high end of the market (high quality) or the low end (low quality). Resulting profits are given by the payoff matrix below.
What is the cooperative outcome? The cooperative outcome is for
A. Firm 1 to choose high and Firm 2 to choose low.
B. Firm 1 to choose low and Firm 2 to choose low.
C. ( already chosen and incorrect)
D. Firm 1 to choose low and Firm 2 to choose high.
E. none of the above.
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