Question: 2. ( 5 points ) Assume that this is a simultaneous move, one shot game, i.e., each player moves simultaneously, and the game is played

2. (5 points) Assume that this is a simultaneous move, one

2. (5 points) Assume that this is a simultaneous move, one shot game, i.e., each player moves simultaneously, and the game is played once. The two firms face the following profit matrix. The number in the table show the profit for each firm from each outcome

(a) What is the Nash equilibrium for this game?

(b) If these two firms were able to collude (negotiate) what outcome would they settle on?

(d) What is Firm 2's secure strategy

shot game, i.e., each player moves simultaneously, and the game is played

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