Consider there are only two participants in the fast-food market; Burger King and McDonald's. They can...

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Consider there are only two participants in the fast-food market; Burger King and McDonald's. They can either charge high or low prices. Assume Burger King charges low prices, then McDonald's would have a return of 200million if they charge low prices and a return of 10million if they charge high prices. If Burger King charges high prices however, McDonald's would have a return of 150million if they charge low prices and a return of 300million if they would charge high prices. The return structure for Burger King is analogous. a) Construct a payoff matrix for Burger King and McDonald's b) Find all possible Nash-Equilibria Consider there are only two participants in the fast-food market; Burger King and McDonald's. They can either charge high or low prices. Assume Burger King charges low prices, then McDonald's would have a return of 200million if they charge low prices and a return of 10million if they charge high prices. If Burger King charges high prices however, McDonald's would have a return of 150million if they charge low prices and a return of 300million if they would charge high prices. The return structure for Burger King is analogous. a) Construct a payoff matrix for Burger King and McDonald's b) Find all possible Nash-Equilibria

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Payoff Matrix in millions of McDonalds Burger King Low Price Low Price BK 200 MC 200 High Price BK 3... View the full answer