Economics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 26

Company A is considering whether to invest in infrastructure that will allow it to expand into a new market. Company B is considering whether to enter the market. Assume the companies know each other's payoffs. Using Figure 9P-5 , choose the outcome that will occur from the list below.
a. A invest, B enter.
b. A invest, B don't enter.
c. A don't invest, B enter.
d. A don't invest, B don't enter.