Business, 07.03.2020 04:37, michellen2020

Two firms compete in a declining industry. Each firm has three possible choices: 1) exit the industry immediately (and gets a payoff of 0); 2) exit at the end of this quarter; 3) exit at the end of next quarter. Each quarter, if both firms are operating, each incurs a payoff of -1; if a firm operates alone, it yields a payoff of 2.

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Two firms compete in a declining industry. Each firm has three possible choices: 1) exit the industr...