Citron Pricing

$\backslash$table$[[,,$High$],[,$Low,$],[$Zipride Pricing,High,$11,11],[3,$Low,$20,3]]$

For example, the lower$-$left cell shows that if Zipride prices low and Citron prices high, Zipride will earn a profit of $$20$ million, and Citron will earn a profit of $$3$ million. Assume this is a simultaneous game and that Zipride and Citron are both profit$-$maximizing firms.

If Zipride prices high, Citron will make more profit if it chooses a

$q,$ price.

$q,$ price, and if Zipride prices low, Citron will make more profit if it chooses a

Tips

If Citron prices high, Zipride will make more profit if it chooses a $$ price, and if Citron prices low, Zipride will make more profit if it chooses a

cess Tips

price.