Table 11-12

The payoff matrix shown above assumes that Perfect Plants and Florabunda Florist must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery.The amount of profit for one firm depends on whether the other firm offers same-day delivery.
-Refer to Table 11-12.Which of the following statements is true?

Question

Table 11-12
  
The payoff matrix shown above assumes that Perfect Plants and Florabunda Florist must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery.The amount of profit for one firm depends on whether the other firm offers same-day delivery.
-Refer to Table 11-12.Which of the following statements is true?

Quizplus · Accepted Answer

A dominant strategy is one that results in the highest payoff for a player, no matter what the other player does. If both firms have a dominant strategy to offer same-day delivery, it means that this strategy yields the best outcome for each firm regardless of the competitor's action.

Table 11-12 the Payoff Matrix Shown Above Assumes That Perfect Plants and Assumes