Two competing firms are each planning to introduce a new product. Each will decide whether to produce Product A, Product B or Product C. They will…
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(i) Are there any Nash equilibria in pure strategies? If so, what are they?
(ii) If both firm use maximin strategies, what outcome will result?
(iii) If Firm 1 uses a maximin strategy and Firm 2 knows this, what will Firm 2 do?
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