Read the following problem and create a payoff matrix.
A market has only two sellers. They are both trying to decide on a pricing strategy. If both firms charge a high price, then each firm will experience a 10 percent increase in
profits. If both firms charge a low price, then each firm will experience a 1 percent increase in profits. If Firm 1 charges a low price and Firm 2 charges a high price, then Firm 1
will experience a 6 percent increase in profits and Firm 2 will experience a 2 percent increase in profits. If Firm 2 charges a low price and Firm 1 charges a high price, then
Firm 2 will experience a 7 percent increase in profits and Firm 1 will experience a 3 percent increase in profits.
At the Nash equilibrium, Firm 2 will experience a ____ percent increase in profits. Fill in the blank. Please report your answer as only a whole number (no spaces, symbols, or
letters).