To the right is part of a simple game tree. A blue node indicates a choice for Firm 1 and an orange node a choice for Firm 2. In this instance Firm 1 (F1) must decide whether or not to advertise. Once this decision is made, Firm 2 (F2) will then have to choose its strategy. Firm 2 appears to have more choices simply because it decides after Firm 1. Whichever path Firm 1 chooses Firm 2 is left with two choices.
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