Remeber that in games such as this, games of complete information, both players know the complete game. This means that Firm 2 is aware that Firm 1 has a dominant strategy. Thus, Firm 2 can predict with certainty what Firm 1 will do if the game is played only once.

   Firm 2 knows that it faces the simple game shown to the right. If the game is played only once Firm 1 will play its dominant strategy S2. This means that Firm 2 knows for certain how to play the game, it should play its strategy S2 earning payoffs of 11 rather than 9

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