Answer Happy

Note: 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 the combinations of pricing strategies available to the two companies. The numbers represent millions of dollars in profit. The negative sign indicates a loss.) Beta High price 100, 200 200, 100 High price Low price Assuming Alpha and Beta act in their own self-interest, explain what will be the most likely pay-off for these firms in () a one-shot game, and (ii) an infinitely repeated game. Make reference to the concept of Wash equilibrium in your answer. Alpha Low price 50, 250 0, 100 h