The following payoff matrix represents a one-time prisoner’s…
The following payoff matrix represents a one-time prisoner’s dilemma game between two oligopolists deciding whether to maintain high prices or cut prices: Firm B: High Price Firm B: Low Price Firm A: High Price A: $10m, B: $10m A: $2m, B: $12m Firm A: Low Price A: $12m, B: $2m A: $5m, B: $5m What is the Nash equilibrium of this game?