Two firms produce a homogeneous good. There are 10 customers in the market, each of whom is willing to purchase at most one unit of the good at a price no higher than $1. Neither firm has any costs but firm 1 cannot produce more than 7 units whereas firm 2 can produce as many units as it wishes. The order of moves is as follows: Stage 1: Firm 1 chooses its price 1. Stage 2: Firm 2 observes 1 and chooses its price 2