Question: The payoff matrix shows a quantity-setting game between American Airlines and United Airlines in which each firm chooses one of the three output levels, 96,

 The payoff matrix shows a quantity-setting game between American Airlines and

The payoff matrix shows a quantity-setting game between American Airlines and United Airlines in which each firm chooses one of the three output levels, 96, 64, and 48 (thousand passengers). In each cell, the number on the lower-left triangle is the payoff of United Airlines, and the number on the upper-right triangle is the payoff of American Airlines. Which of the following is not true? American Airlines 9A = 96 qA = 64 9A = 48 qu = 196 0 2.0 2.3 0 3.1 4.6 United Airlines qu = 64 3.1 4.1 3.8 2.0 4.1 5.1 qu = 48 4.6 5.1 4.6 2.3 3.8 4.6 The Stackelberg game has multiple equilibria. The benefit to American Airlines from being a Stackelberg leader rather than a Cournot player is 0.5 The benefit to American Airlines from being a Stackelberg leader rather than a follower is 2.3. The Stackelberg leader has the first-mover advantage in this game

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