Question 2. Caress and Sigh are two lotion brands that compete in the same market. They...

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Question 2. Caress and Sigh are two lotion brands that compete in the same market. They are both deciding whether to add SPF 30 protection to their lotions. The matrix below shows the payoffs in millions of dollars to each producer. Caress is the row player and their payoff is listed first. Sigh is the column player and their payoff is listed second after the comma. Caress No Change Sigh No Change Add SPF Protection 320, 240 80, 280 Add SPF Protection 260, 160 220, 220 a. (15 points) If they move simultaneously and this is a one-shot game, what will be the Nash Equilibrium? Explain your answer. b. (15 points) Will the Nash equilibrium be the same as in part a. when Sigh moves first? Explain why or why not. Question 2. Caress and Sigh are two lotion brands that compete in the same market. They are both deciding whether to add SPF 30 protection to their lotions. The matrix below shows the payoffs in millions of dollars to each producer. Caress is the row player and their payoff is listed first. Sigh is the column player and their payoff is listed second after the comma. Caress No Change Sigh No Change Add SPF Protection 320, 240 80, 280 Add SPF Protection 260, 160 220, 220 a. (15 points) If they move simultaneously and this is a one-shot game, what will be the Nash Equilibrium? Explain your answer. b. (15 points) Will the Nash equilibrium be the same as in part a. when Sigh moves first? Explain why or why not.