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What present value firm b of cheating on collusive strategy

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Reference no: EM133666008

Problem: Refer to the accompanying normal-form game of advertising depicted here. Firm A Firm B Advertise Do Not Advertise Advertise $0, $0 $175, -$100 Do Not Advertise -$100, $175 $125, $125 Suppose there is a 20 percent chance that the advertising game depicted shown above will end in the next period. What is the present value to firm B of cheating on the collusive strategy?

Reference no: EM133666008

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