The table below shows the payoff matrix in the form of short term profits for two firms,A and B,for two different strategies,investing in new capital or not investing in new capital.Payoffs are in millions of dollars.
Refer to the figure above.The game is an example of a:
A) cartel.
B) credible promise.
C) prisoner's dilemma.
D) multiple equilibria game.
Correct Answer:
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