Use the following to answer question
Consider the following information for a simultaneous move game: Two discount stores (megastore and superstore)are interested in expanding their market share through advertising.The table below depicts the strategic outcomes (profits)of both stores with and without advertising.

-What is the equilibrium payoff for the stores?
A)Megastore $95 and Superstore $80
B)Megastore $305 and Superstore $55
C)Megastore $65 and Superstore $285
D)Megastore $165 and Superstore $115

Question

​Use the following to answer question
Consider the following information for a simultaneous move game:  Two discount stores (megastore and superstore)are interested in expanding their market share through advertising.The table below depicts the strategic outcomes (profits)of both stores with and without advertising.
 
-​What is the equilibrium payoff for the stores?
A)​Megastore $95 and Superstore $80 
B)Megastore $305 and Superstore $55 
C)Megastore $65 and Superstore $285 
D)​Megastore $165 and Superstore $115

Quizplus · Accepted Answer

The equilibrium payoff for the stores is determined by analyzing their strategies and outcomes in a game theoretical context, where both stores choose their strategies to maximize their own payoffs given the actions of the other. Without specific details on the strategies, payoffs, or the nature of the game (e.g., simultaneous move, sequential, etc.), it's not possible to provide a detailed explanation. However, in a typical game theory scenario, the equilibrium is reached when neither store can improve its payoff by unilaterally changing its strategy, suggesting that option A represents such an equilibrium state.

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Use the Following to Answer Question