Why would this be called a prisoner dilemma game

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The following matrix shows strategies and payoffs for two firms that must decide how to price:

Firm 2Firm 1 Price HighPrice LowPrice High400, 400-50, 700Price Low700, -50100,100

a. Does either firm have a dominant strategy, and if so, what is it?

b. What is the Nash equilibrium of the game?

c. Why would this be called a prisoner's dilemma game?

Reference no: EM132065505

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