Two firms in a local market compete in the manufacture of cyberwidgets.Each firm must decide if they will offer a warranty or not.The pay-offs of each firm's strategy is a function of their competitor as well.The pay-off matrix is presented below. If firm #1 announces it will offer a warranty regardless of what firm #2 does,is this a credible threat? Why or why not?

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Two firms in a local market compete in the manufacture of cyberwidgets.Each firm must decide if they will offer a warranty or not.The pay-offs of each firm's strategy is a function of their competitor as well.The pay-off matrix is presented below.  If firm #1 announces it will offer a warranty regardless of what firm #2 does,is this a credible threat? Why or why not?

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The Answer of Two firms in a local market compete in the manufacture of cyberwidgets.Each firm must decide if they will offer a warranty or not.The pay-offs of each firm's strategy is a function of their competitor as well.The pay-off matrix is presented below.  If firm #1 announces it will offer a warranty regardless of what firm #2 does,is this a credible threat? Why or why not?

Two Firms in a Local Market Compete in the Manufacture