Essay
Two large electronic retailers, Biggest Buy and Connection City, are considering entering a small town. Each firm can either enter the market or not. The table shows the payoff matrix. Profits in each cell of the payoff matrix are given as (Biggest Buy, Connection City). Are there any dominant strategies in the game? If this game is played only once and each firm makes the entry decision independently, what is the Nash equilibrium of this game? Explain your conclusions. 
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There are no dominant strategies. If Big...View Answer
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Correct Answer:
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