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Two firms compete in a market with two segments, Mass-Market and Niche-Market. Total profit in the Mass Market is 14, while total profit in the
Two firms compete in a market with two segments, Mass-Market and Niche-Market. Total profit in the Mass Market is 14, while total profit in the Niche Market is 10. Firms choose either to enter the Mass Market (M) or the Niche Market (M), but not both. If both firms enter the same market, they split the profit from the market equally. The following matrix depicts the payoffs in the game. Firm 1 chooses the row and Firm 2 chooses the column. Payoffs are written (u1,u2)
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