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Let's look again at the first game we saw in this section. One way we can tell a particular outcome is not a Nash equilibrium is to ask if the game ended there would either play wish she could change her play?
Consider the High,
High square to the right. If the game were to be played again and if Firm 1 believed Firm 2 would again play
High then Firm 1 would wish to change to Low, as indicated by the arrow. Likewise, if Firm 2 believed that Firm 1 would stick with High Firm 2 would wish to switch to Low. So, High,
High can't be a Nash equilibrium since both players aren't doing the best possible given what the other player is doing
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