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Business, 23.04.2020 18:56 kotetravels10

Two companies share a market in which they currently make $5,000,000 USD each. Both need to determine whether they should advertise. For each company, advertising costs $2,000,000 and captures $3,000,000 from the competitor, provided the competitor doesn't advertise. Draw on Nash equilibria and Pareto optimal strategies to justify what the companies should do.

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