For example consider two firm that are each planning to introduce of two products which are complementary goods. As the payoff matrix Table 13.13 shows Firm1 has a cost advantage over Firm2 in producing Therefore , if both firm produce A Firm1 can maintain a lower price and earn a higher profit. Similarly Firm2 has a cost advantage over Firm1 in producing product B. If the two firm could agree about who will produce what the rational outcome would be in the upper right-hand corner : Firm1 product A, Firm2 produced B and both firm make profits of 50. Indeed even without cooperation this outcome will result whether Firm1 or Firm2 moves first or both firm move simultaneously. Why? Because producing B is a dominant strategy for Firm2 , So (A,B) is the only Nash equilibrium