(a) The table below shows the payoff matrix in terms of profit for two stalls, A and B, with two pricing strategies, high price and low price StallB HighPrice LowPrice StallA HighPrice $20mforStallA $8 5mforStallB $30mforStallA $6 5mforStallB Low Price $7 5mforStallA $50mforStallB $25mforStallA $40mforStallB Solve for the Nash equilibrium and explain whether this game is a prisoner's dilemma game (b) If the game becomes a sequential game where Stall A gets to move first, construct a decision tree diagram and solve the game using roll back method Explain your answers

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Question: (a) The table below shows the payoff matrix in terms of profit for two stalls, A and B, with two pricing strategies, high price and

(a) The table below shows the payoff matrix in terms of profit for two stalls, A and B, with two pricing strategies, high price and low price.

		StallB
HighPrice	LowPrice
StallA	HighPrice	$20mforStallA $8.5mforStallB	$30mforStallA $6.5mforStallB
Low Price	$7.5mforStallA $50mforStallB	$25mforStallA $40mforStallB

Solve for the Nash equilibrium and explain whether this game is a prisoner's dilemma game.

(b) If the game becomes a sequential game where Stall A gets to move first, construct a decision tree diagram and solve the game using roll-back method. Explain your answers.

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