What is the Suggested Filled-in Payoffs, a and b, that would result in the first mover advantage?

 

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Consider the following game where firm one decides whether to promote the products or leave the market (Promote or Leave) and firm two decides to whether update the current products or develop newproducts (Update or New). The payoff matrix does not yet contain all the necessary payoffs. Assume firmone moves first. Firm one Promote Leave Firm two New a, 30 0,60 Update 25, b 0,50 Consider the following game where firm one decides whether to promote the products or leave the market (Promote or Leave) and firm two decides to whether update the current products or develop newproducts (Update or New). The payoff matrix does not yet contain all the necessary payoffs. Assume firmone moves first. Firm one Promote Leave Firm two New a, 30 0,60 Update 25, b 0,50

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To suggest values for the filledin payoffs a and b that would result in a firstmover advantage for Firm one we need to understand the concept of first... View the full answer