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Game Theory for Applied Economists Solution Manual PDF  Form

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- [Instructor] What we have here is a free response question that you might see on an AP microeconomics type exam that deals with game theory, and it tells us Breadbasket and Quicklunch are the only two sandwich shops serving a small town. So, we're in an oligopoly situation where we only have a few firms. Each shop can choose to set a high price, or a low price, for sandwiches. The payoff matrix below shows the daily profits for each combination of prices that the two shops could choose. The first entry shows Breadbasket's profits, and the second entry shows Quicklunch's profits. Assuming that both shops know the information shown in the matrix, answer the following. So, just to make sure I understand what's going on here, this is saying that for example if bread, Breadbasket can either choose to charge high prices or low prices. Quicklunch can either choose to charge high prices or low prices. If Breadbasket chooses high prices and Quicklunch also chooses high prices, then what this

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