Firm1 of course would prefer the outcome in the lower left-hand corner of the payoff matrix. But in the context of this limited set of decisions it cannot achieve that outcome. Suppose however that Firm1 and 2 are also bargaining over the second issue-whether to join a research consortium that a third firm trying to form. Table 13.14 shows the payoff matrix for this decision problem. Clearly the dominant strategy is for both firm to enter the consortium, thereby increasing profits to 40