The following payoff diagram shows profits for a year for companies A & B.

	Company A
Company B	Price Strategy	Low	High
	Low	$0, $0	$11, ($2)
	High	($2), $11	$6, $6

Based on this payoff diagram, determine the optimal pricing strategy in a:

1/One-shot simultaneous game.

2/Multi-shot repeating game with a 60% chance that the game would end each year.

Answer rating: 100% (QA)

Answer By determining the games Nash equilibrium NE businesses may learn how to set prices that will ... View the full answer