Two computer firms, A and B, are planing to market network systems for office information management. Each firm can develop either a fast, high quality system (High) or a slower, low quality system (Low). Market research indicates the resulting profit to each for the alternative strategies given by the payoff matrix to the right. 1) If both firms make their decisions at the same time and follow a maximin (low risk) strategy, what will the outcome be?2) Suppose both firms try to maximize profit, but that Firm A has a headstart in planing and can commit first. Now what will be the outcome?3) What will be the outcome of Firm B has the start in planing and can commit first? 4) Getting a head-start costs money. [...] Which firm will spend more to speed up planing? How much will it spend? 5) The amount that firm B would then spend to move first...

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