The numbers in each cell are each firm's profits.
Refer to the figure above.The payoffs of this game are such that:
A) if Row Restaurant expects that Column Cafe will choose its dominant strategy,Row should choose to not follow its own dominant strategy.
B) profits at both firms would be highest if both firms follow their dominant strategies.
C) both firms would benefit from a law that made publishing coupons illegal.
D) an agreement to not publish coupons would be stable because with these profits neither firm has an incentive to defect.
Correct Answer:
Verified
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