We can see from the payoff matrix that there are no pure strategy Nash equilibrium in this game because at least one firm would always have an incentive to change its behavior. ​ From​ Nash's​ theorem, we know there must be at least one Nash equilibrium so there must be a mixed strategy Nash equilibrium for this game.   Find the mixed strategy Nash equilibrium by first deleting all dominated strategies in the game   What's the expected payoff to Firm 1 in the equilibrium?

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