How can a payoff matrix be used to find a player's optimal stra... | Filo
How can a payoff matrix be used to find a player's optimal stra... | Filo
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Using a payoff matrix to determine the equilibrium outcomeSuppose there are only two firms that sell smartphones, Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.Pictech Pricing High Low High Low Flashfone Pricing15, 39, 9For example, the lower left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of 15 million and Picte
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