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Two firms decide whether to launch a new product: (i) If both firms choose to launch a new product, then each firm will receive $40
Two firms decide whether to launch a new product: (i) If both firms choose to launch a new product, then each firm will receive $40 million due to incurring new expenses; (ii) if just one firm chooses to launch a new product, the firm launching a new product grabs market share from the other firm, and will receive $30 million, while the other firm which chooses not to launch will receive $45 million; if neither firm choose to launch a new product, then each firm will receive $50 million from current market. Assume both firms wants to maximize its revenue, so what will be their best move? Neither firm chooses to launch a new product O Both firms choose to launch a new product O Just one firm chooses to launch a new product
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