(Solved): Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and ...

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either

or

. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and recelves the full value of its bid. The strategle (non-cooperative) cutcome in this situation is both firms bid

. toth enrs refur-4. the tut chare the contract. both firms bld $110.