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Business, 06.12.2019 23:31 dansuba

Refer to the payoff matrix. suppose that alpha and beta agree that they will both pursue a high-price strategy. if beta then cheats on the agreement in order to increase profits, which of the following is true?
a. both firms will price high, and this outcome is a nash equilibrium.
b. both firms will price low, and this outcome is a nash equilibrium.
c. both firms will price high, but this outcome is not a nash equilibrium.
d. both firms will price low, but this outcome is not a nash equilibrium

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