Instructions

In this study, you will be anonymously matched with another player. You will interact only via the computer and will not know the other student you have been matched with. Each player represents a separate firm. Your job is to choose the price for your product: either $1, $2, or $3. Your payoff will depend on your choice and the choice of your partner, either an equal, lower, or higher price. If you make sales, a higher price equals a higher payoff. You will learn of your partner's decision after both of you have chosen a price.

• If you both choose the same price, you will split the market
• If you choose different prices, the player who chose the lower price will earn all of the sales, and the other player will make zero sales.

	Firm B
Firm A		$1	$2	$3
	$1	(6,6)	(15, 0)	(15, 0)
	$2	(0, 15)	(9, 9)	(18, 0)
	$3	(0, 15)	(0, 18)	(12, 12)