Refer to the above payoff matrix for the profits (in $ millions)of two firms (A and B)making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?

A)Both firm A and firm B choose not to advertise.
B)Both firm A and firm B choose to advertise.
C)Firm A chooses to advertise while firm B chooses not to advertise.
D)Firm A chooses not to advertise while firm B chooses to advertise.

Question

Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?

A)Both firm A and firm B choose not to advertise. 
B)Both firm A and firm B choose to advertise. 
C)Firm A chooses to advertise while firm B chooses not to advertise. 
D)Firm A chooses not to advertise while firm B chooses to advertise.

Quizplus · Accepted Answer

The Answer of  Refer to the above payoff matrix for the profits (in $ millions)of two firms (A and B)making a decision to advertise or not.Which of the following is the outcome of the dominant strategy without cooperation?

A)Both firm A and firm B choose not to advertise. 
B)Both firm A and firm B choose to advertise. 
C)Firm A chooses to advertise while firm B chooses not to advertise. 
D)Firm A chooses not to advertise while firm B chooses to advertise.

Refer to the Above Payoff Matrix for the Profits (In