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Represent a prisoner dilemma

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Reference no: EM131243030

Please prepare a "sequential game tree" in which Fox News is the first mover and Dish Network is the second mover. Fox News has two potential strategies: 1) to increase the price they charge to Dish Network Significantly by 50% or 2)to increase the price modestly by 10%. Dish Nework has to option to accept or reject Fox News' offer. At the end of each branch of the tree show the hypothetical payoffs to both Fox News and Dish Network representing the change in proft from each each possible outcome. The Nash equilibrium should be that Fox News increases price significantly and Dish Network accepts the offer, but payoffs to Dish Network would be highest if Fox News had increased the price by 10%. Does this represent a prisoner's dilemma? Why or Why not?

Reference no: EM131243030

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