Consider the accompanying payoff matrix. The dominant strategy for Row Resorts is to ________ , and the dominant strategy for Column Cruises is to ________ .
A)keep rates high; keep rates high
B)offer reduced rates; offer reduced rates
C)keep rates high; offer reduced rates
D)offer reduced rates; keep rates high

Question

Consider the accompanying payoff matrix.  The dominant strategy for Row Resorts is to ________ , and the dominant strategy for Column Cruises is to ________ .
A)keep rates high; keep rates high 
B)offer reduced rates; offer reduced rates 
C)keep rates high; offer reduced rates 
D)offer reduced rates; keep rates high

Quizplus · Accepted Answer

For both firms, their payoff is higher if they offer reduced rates, regardless of what the other player does.

Consider the Accompanying Payoff Matrix