Firm 2 has promised that, if it is faced with this outcome it will choose to Stay Out. Can Firm 2 be trusted to accept a payoff of 8 when it has the possibility of earning a payoff of 12? Once it has convinced Firm 1 to Stay Out why wouldn't it go ahead and Expand? The answer is, it probably would. In this case its difficult to imagine that Firm 1 could be convinced to trust Firm 2. Given the payoffs, the promise by Firm 2 to Stay Out isn't credible.

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