Refer to the normal-form game of price competition shown below. 
Firm A must decide whether or not to introduce a new product. If firm A introduces a new product, firm B must decide whether or not to clone the product. The payoff structure of the game is depicted in Figure 10-12. The subgame perfect Nash equilibrium to this game is:
Definitions:
Pricing Decisions
The process of setting the sale price of a product or service, considering costs, competition, and market demand.
Departmental Overhead Rate
The rate at which indirect production costs are allocated to specific departments within a manufacturing process.
Plantwide Overhead Rate
A single overhead absorption rate used throughout an entire manufacturing plant.
Overhead Allocations
The process of assigning indirect costs to different cost objects such as products, services, or departments.
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