Assume that this is a simultaneous move one shot game. Suppose Toyota and Honda must decide whether to make a new type of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000.

Toyota Side impact air bags are Side impact airbags are standard equipment not standard equipment Honda Side impact air bags are standard equipment $2.5 billion, $2.5 billion $3 billion, -$1.5 billion Side impact airbags are not standard equipment -$1.5 billion, $3 billion $1 billion, $1 billion