1 QUESTION 13Note: No referencing is required for short answer questions.The following market is a duopoly populated only by the companies Alpha and Beta. The pay-off matrix immediately below shows thecombinations of pricing strategies available to the two companies. The numbers represent millions of dollars in profit. (The negative signindicates a loss.)High priceLow priceBetaHigh price Low price100, 200 -50, 250200, 1000, 100AlphaAssuming Alpha and Beta act in their own self-interest, explain what will be the most likely pay-off for these firms in (i) a one-shot game, and (ii)an infinitely repeated game. Make reference to the concept of Nash equilibrium in your answer.

Nash equilibrium refers to the strategy which provide the best outcomes provided the strategy of…

QUESTION 13 ote: No referencing is required for short answer questions. e following market is a duopoly populated only by the companies Alpha and Beta. The pay-off matrix immediately below shows the mbinations of pricing strategies available to the two companies. The numbers represent millions of dollars in profit. (The negative sign dicates a loss.) Alpha High price Low price Beta High price 100, 200 200, 100 Low price -50, 250 0, 100 suming Alpha and Beta act in their own self-interest, explain what will be the most likely pay-off for these firms in (i) a one-shot game, and (ii) infinitely repeated game. Make reference to the concept of Nash equilibrium in your answer.