Question: Please explain this,... I don't think my calculations are correct In the game shown below, firms 1 and 2 must independently decide whether to charge

Please explain this,... I don't think my calculations are correct

In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices. Firm Two High Price Low Price Firm One High Price 15, 15 -2, 50 Low Price 50, -2 2.5, 2.5 Suppose the game is infinitely repeated, and the interest rate is 8 percent. If firm A deviates from a trigger strategy to support a high price. What is the present value of A's payoff from cheating? 50 65 52.5 81.25

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