A serious problem with using Nash equilibria as a solution approach is that it is quite common for games to have multiple Nash equilibria. In fact both the games we've seen so far have two Nash equilibria.

   Sometimes when games have two Nash equilibria one is more convincing than the other. Let's consider the game to the right. First we can easily see that there is no dominant strategy. Let's try using our method of drawing arrows to see if we can locate any Nash equilibria. Let's start with Firm 1 High, Firm 2 Low since this was a Nash equilibrium in our last game.

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