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two firms ( form A and firm C ) compete for customers and are considering improving their operations. Each firm has one of two options:

two firms (form A and firm C) compete for customers and are considering improving their operations. Each firm has one of two options: (i) to invest in a new AI-powered recommendation system or (ii) to invest in upgrading their Data Management Systems. Investing in the recommendation system carries a cost of 20 for each firm and generates a benefit of v> or equal to 0 bgut as this system is patentable only one firm could reap this reward: if both firms invest in the recommendation system then each gets on expectation v/2 while if only one invests it receives v. Upgrading data Management Systems generates an individual benefit of 20 but also an individual cost that is increasing in the number of firms upgrading: if only one firm upgrades it bears a cost of 10 while if both firms upgrade tehy each incur a cost of 19. Both firms simultaneously decide whether to invest in the recommendation system or upgrade Data Management
write is firm R's best response as a function of the parameter v to firm C upgrading its data management system? What is F down he 2x2 payoff matrix of this game. What is firm R's best response as a function of the parameter v to firm C investing in the recommendation system?

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