Refer to the normal-form game of advertising shown below. Consider the advertising game in Figure 10-17. Firms A and B know the game will be played for exactly five periods. What is a Nash equilibrium to this game?
A) {advertise, do not advertise}
B) {advertise, advertise}
C) {do not advertise, do not advertise} provided the interest rate is less than 0.10 percent
D) {advertise, advertise} provided the interest rate is less than 0.50 percent

Question

Refer to the normal-form game of advertising shown below.  Consider the advertising game in Figure 10-17. Firms A and B know the game will be played for exactly five periods. What is a Nash equilibrium to this game?
A) {advertise, do not advertise} 
B) {advertise, advertise} 
C) {do not advertise, do not advertise} provided the interest rate is less than 0.10 percent 
D) {advertise, advertise} provided the interest rate is less than 0.50 percent

Quizplus · Accepted Answer

The Answer of Refer to the normal-form game of advertising shown below.  Consider the advertising game in Figure 10-17. Firms A and B know the game will be played for exactly five periods. What is a Nash equilibrium to this game?
A) {advertise, do not advertise} 
B) {advertise, advertise} 
C) {do not advertise, do not advertise} provided the interest rate is less than 0.10 percent 
D) {advertise, advertise} provided the interest rate is less than 0.50 percent

Refer to the Normal-Form Game of Advertising Shown Below