Consider the accompanying payoff matrix. If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A)kept its rates high.
B)offered reduced rates.
C)agreed with Row Resorts to reduce their rates at exactly the same time.
D)choose either strategy because it will have the same payoff in either case.

Question

Consider the accompanying payoff matrix.  If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A)kept its rates high. 
B)offered reduced rates. 
C)agreed with Row Resorts to reduce their rates at exactly the same time. 
D)choose either strategy because it will have the same payoff in either case.

Quizplus · Accepted Answer

If Row Resorts keeps its rates high, then Column Cruises will earn 500 if it offers reduced rates and 300 if it keeps its rates high.

Consider the Accompanying Payoff Matrix