Two companies,A and B,are considering entry into the same two markets: Asia or Australia.Due to financial constraints each company can only enter one of the two markets.The expected payoffs to each company for each possible entry scenario are as follows:
a)Construct a game that represents the entry decision.
b)What type of game is it?
c)Circle all Nash equilibriums for the game.
d)Company A has hired you as a consultant.What advice would you give them regarding this entry decision?
Correct Answer:
Verified
a.and c.
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