Question: The pricing game between two firms, which can each set either a low or a high price, is given by the following normal form. a.

The pricing game between two firms, which can each set either a low or a high price, is given by the following normal form.

The pricing game between two firms, which can each set

a. Find the Nash equilibrium or equilibria of the game.
b. How would you label the actions to make this a quantity game likeCournot?

High price 4, 1 3, 3 Low price Low price High price1, 4

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