Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved
In this example, if both firms charge the low price, Firm 1 gets a payoff of 7 and Firm 2 receives a payoff of 9. If Firm 1 plays "Low" and Firm 2 plays "High" the payoff to Firm 1 is 11 and the payoff to Firm 2 is 5.
Normally all the cells in a payoff matrix will be complete we are showing only some here just for simplicity as we learn how to read them.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved