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As long as this payoff matrix is correct neither firm has any reason to honor the agreement. If you honor the agreement and the other firm plays its dominant strategy you'll end up with a payoff of only 6, the lowest payoff possible in the game. If you play your dominant strategy you'll always be better off whether the other firm honors the agreement or not.
In ever case where a game is played only once, if a player has a dominant strategy we must predict that she will choose it. In many games neither player will have a dominant strategy. In these cases other solution methods must be used. What if only one player has a dominant strategy, will this enable us to solve the game? Sometimes this is sufficient....
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