If each firm follows a mini-max decision rule, you should be able to show that both Firm A and Firm B will still select ‘ low output’ as the worst of the best possi-ble outcomes (3,000<4,000 for each firm). The combination (low output/low output) remains a Nash equilibrium.Even if one firm follows a maxi-min and the other a mini-max decision rule, the combination (low output/low output) will remain a Nash equilibrium in this particu-lar game. We could reasonably describe this output combination (low/low) as a stable, Nash-type equilibrium.
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