Since no arrows point away from Firm 1 High, Firm 2 Low it must also be a Nash equilibrium. A quick check should convince you that neither player will wish to change its stategy so long as the other does not.

   Keep in mind that a Nash equilibrium requires that both players be simulatneously doing the best possible given what the other player is doing. So long as nothing changes neither will wish to change her stragety, like any other equilibrium.

   When a Nash equilibrium is present we should predict it as the outcome of the game, but here we have two and no compelling way to choose one.

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