Use the table below to answer the following questions.
Table 14.2.4
-Refer to Table 14.2.4.The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products.The payoffs in the table are the economic profit made by Bud and Miller.Which one of the following observations is correct?
A)This game has no dominant strategies.
B)This game has no Nash equilibrium.
C)Miller has a dominant strategy but Bud does not.
D)Bud has a dominant strategy but Miller does not.
E)Bud and Miller each have a dominant strategy.

Question

Use the table below to answer the following questions.
Table 14.2.4 
-Refer to Table 14.2.4.The marketers of Budweiser Light beer and Miller Lite beer must decide whether or not to offer new advertising campaigns promoting their products.The payoffs in the table are the economic profit made by Bud and Miller.Which one of the following observations is correct?
A)This game has no dominant strategies. 
B)This game has no Nash equilibrium. 
C)Miller has a dominant strategy but Bud does not. 
D)Bud has a dominant strategy but Miller does not. 
E)Bud and Miller each have a dominant strategy.

Quizplus · Accepted Answer

Both Bud and Miller have a dominant strategy. Bud should advertise if Miller does not advertise and should not advertise if Miller does advertise. Similarly, Miller should advertise if Bud does not advertise and should not advertise if Bud does advertise. The dominant strategies result in the highest payoff for each player regardless of the other player's actions.

Use the Table Below to Answer the Following Questions