For the Payoff Table Listed, Determine the Equilibrium Outcome

question 9

Essay

For the payoff table listed, determine the equilibrium outcome. Does either firm have a dominant strategy?
$\begin{array}{c}\quad\quad\quad\text { Firm } 2\\\begin{array} { | c | c | c | } \hline \text { Firm 1 } & \text { Low price } & \text { High price } \\\hline \text { Low price } & 28,12 & 48,20 \\\hline \text { High price } & 20,30 & 30,22 \\\hline\end{array}\end{array}$

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's stress response and in various cognitive and emotional functions.

Suprachiasmatic Nucleus

A small region of the brain in the hypothalamus responsible for controlling circadian rhythms, which regulate the body's sleep-wake cycle.

Melatonin

A hormone produced by the pineal gland in the brain, responsible for regulating sleep and wakefulness.

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that regulates sleep patterns.