Que.
Suppose that two firms face the following payoff matrix:
Firm 2
|
Firm 1
|
|
Low price
|
High price
|
Low price
|
(2, 0)
|
(1, 2)
|
High price
|
(0, 7)
|
(6, 6)
|
Given these payoffs, Firm 2 wants to match firm 1's price, but firm 1 does not want to match firm 2's price. What is the mixed strategy nash equilibrium for the game?