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Business, 30.04.2021 21:30 ricardotavarez6

Lee and Cody are competitors. Each is considering whether to take aggressive action against the other or to cooperate. Cody can observe Lee's decision. Their decision tree is drawn below. Suppose Lee and Cody enter into a binding non-aggression agreement. As part of that agreement they negotiate a fine that Cody would have to pay to Lee if Cody responded to Lee's passive choice with aggression. For that fine to be effective, it must be

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