There are only two gas stations in a small town, Swifty Gas and Speedy Gas.Each firm can set either a high price or a low price; customers view these two firms as nearly perfect substitutes.The table shows the payoff matrix of daily profits that each firm would receive from their pricing decision, given the pricing decision of their rival.Profits in each cell of the payoff matrix are given as (Swifty, Speedy).If this game is played only once and each firm sets the price of gas independently, what is the Nash equilibrium of this pricing game? Is this game an example of a prisoners' dilemma? Explain your conclusions.

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The Answer of There are only two gas stations in a small town, Swifty Gas and Speedy Gas.Each firm can set either a high price or a low price; customers view these two firms as nearly perfect substitutes.The table shows the payoff matrix of daily profits that each firm would receive from their pricing decision, given the pricing decision of their rival.Profits in each cell of the payoff matrix are given as (Swifty, Speedy).If this game is played only once and each firm sets the price of gas independently, what is the Nash equilibrium of this pricing game? Is this game an example of a prisoners' dilemma? Explain your conclusions.

There Are Only Two Gas Stations in a Small Town