-Consider the noncooperative, one-time, static game depicted in Figure 2.14 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. If both players adopt a maximin decision rule, the resulting strategy profile is:
A) {Newspapers, Magazines}.
B) {Television, Magazines}.
C) {Newspapers, Radio}.
D) {Television, Radio}.

Question

-Consider the noncooperative, one-time, static game depicted in Figure 2.14 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. If both players adopt a maximin decision rule, the resulting strategy profile is:
A) {Newspapers, Magazines}. 
B) {Television, Magazines}. 
C) {Newspapers, Radio}. 
D) {Television, Radio}.

Quizplus · Accepted Answer

Tsunami Corporation's maximin payoff is $2 million, which is achieved by advertising in Newspapers. Cyclone Company's maximin payoff is also $2 million, which is achieved by advertising in Magazines. Therefore, the resulting strategy profile is {Newspapers, Magazines}.

-Consider the Noncooperative, One-Time, Static Game Depicted in Figure 2