- The table is the payoff matrix for a simple two-firm game. Firms A
and B are bidding on a government contract, and each firm’s bid
is not known by the other firm. Each firm can bid either $10 000
or $5000. The cost of completing the project for each firm is
$4000. The low-bid firm will win the contract at its stated price;
the high-bid firm will get nothing. If the two bids are equal, the
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