(KEY QUESTION) Consider the following strategic interaction between two Australia telecommunication companies deciding to set the prices of their 'unlimited calls' mobile package. Optus Low Medium High Vodafone Low 7, 4 12, 2 17, -3 Medium 1, 10 8, 8 15, 3 High -5, 19 3, 16 11, 9 a. Try to explain the business reasons behind the relationships between the various payoffs. For example, why is Low the best response to the opponent playing High? Why is the payoff from (High, High) higher for both players than from (Medium, Medium)? b. State all the dominated strategies in the game, by which strategy they are dominated, and whether weakly or strictly. What is the equilibrium outcome by dominance, if any? c. What are the pure strategy Nash equilibria of this game? d. In the simultaneous game, is there anything interesting or surprising in this game? Does it remind you a different game we have examined? Explain. e. Now assume Vodafone is the leader (first mover), what is the equilibrium outcome? Is Vodafone's leadership an advantage or disadvantage for Vodafone compared to the simultaneous game? Is Vodafone's leadership an advantage or disadvantage for Optus compared to the simultaneous game? Explain.