SQ2_Games

If yoohoo enters the market why might its profits be

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Unformatted text preview: Yoohoo Yoohoo Stay Enter Stay Enter Out Out 5 (G) 4 (G) 6 (G) 3 (G) 0 (Y) 1 (Y) 0 (Y)  ­2 (Y) a. If Yoohoo enters the market what will its payoff be if Goggle invests? What if Goggle doesn’t invest? If Yoohoo enters the market, why might its profits be lower when Goggle invests? b. What is the (subgame perfect) Nash equilibrium of this game? c. In this example, will Goggle be able to deter Yoohoo’s entry...
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