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Business, 06.05.2020 00:13 daltonduh6218

Two companies share a market, in which they currently make $5,000,000 each. Both need to determine whether they should advertise. For each company advertising costs $2,000,000 and captures $3,000,000 from the competitor provided the competitor doesn't advertise. What should the companies do? Analyze this simultaneous game, discuss outcomes and equilibrium. SHOW WORK. EXPLAIN.

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Two companies share a market, in which they currently make $5,000,000 each. Both need to determine w...

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