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Q. In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program. The annual profits (in millions of dollars) associated with each strategy are summarized in the subsequent table (where the first number is the payoff to Airline A also the second to Airline B): a) Does either player have a dominant strategy? Elucidate. b) Is there Nash equilibrium in this game? If so illustrate what is it? c) Is this game an example of the prisoners' dilemma? Elucidate.
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