Payoff Matrix for the Two-Firm Price-Setting Game (Figure 8.20)
This node presents the payoff matrix from Figure 8.20 for a price-setting game between two firms. The interaction is a coordination game with two Nash equilibria. The matrix displays the profits for Firm A (row player) and Firm B (column player) based on their pricing choices. The payoffs are: ($90, $90) if both select a high price, ($36, $36) if both select a low price, ($72, $0) if Firm A chooses a low price and Firm B a high price, and ($0, $72) if Firm A chooses a high price and Firm B a low price. [1]
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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