Suppose a US Auto manufacturer tries to make its cars as similar as possible to a line of very expensive cars produced by a German Auto company. The German firm would like its cars to be very different from the much cheaper cars produced by the US firm.

   This might give rise to a payoff matrix like that shown here. For simplicity we suppose there are only two body styles possible. If the US firm is successful and copies the German auto its payoffs are much higher but the German firm is hurt. If however the styles are different the German firm fares better.

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