What should be the equilibrium of the game

Reference no: EM13750317

According to the logic of backward induction what should be the equilibrium of the game?

a) Firm 1 chooses a high price, Firm 2 chooses a high price.
b) Firm 1 chooses a high price, Firm 2 chooses a low price.
c) Firm 1 chooses a low price, Firm 2 chooses a high price.
d) Firm 1 chooses a low price, Firm 2 chooses a low price.

Reference no: EM13750317

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