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Uber and Grab are the only two private hire car companies in a small city. They...

Uber and Grab are the only two private hire car companies in a small city. They agree to collude by standardizing the hiring price and share the private hire car market equally. If neither firm cheats on the agreement, each can make $20 million profit. If either firm cheats, the party that cheats can make a profit of $30 million, while the complier incur a loss of $10 million. If both cheat, each can make $4 million profit.   Construct a payoff matrix for this game. Solve for the equilibrium and explain whether this game is a prisoner’s dilemma game.

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