Microsoft decides whether to compete peacefully or wage the, Econometrics

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Microsoft decides whether to compete peacefully or wage the

Draw the game tree for the game discussed on pages 324-325 in which Microsoft moves first and decides whether to threaten a price war; Redhat then decides whether to enter; and finally, Microsoft decides whether to compete peacefully or wage the price war. Verify that Microsoft's decision at the first stage of the game has no effect on Redhat's strategy.

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