Question: 4. Two companies A and B plan to launch new products. Each of the companies may choose to launch either standard model or supreme model.

4. Two companies A and B plan to launch new products. Each of the companies may choose to launch either standard model or supreme model. If both companies launch standard model, each of the companies would have a prot of $5 million. If company A launches standard model and company B launches supreme model, the prots of A and B will be $9 million and $12 million respectively. If A launches supreme model and B launches standard model, the prots of A and B will be $13 million and $11 million respectively. If both companies launch supreme model, the prots of A and B will be $7 million and $8 million respectively. (a) Write down the game bimatrix. (Payoffs to A and B in million dollars) (b) Find the prudential strategies and the security levels of the two companies. (c) Find all Nash equilibria and the corresponding payoffs to the two companies
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