Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:
A)supported the ban due to their concern over health effects of smoking.
B)thought their First Amendment rights were being violated.
C)were made worse off because the ban significantly reduced cigarette sales.
D)benefited because the decision about whether to advertise on TV was a prisoner's dilemma.

Question

Quizplus · Accepted Answer

Cigarette manufacturers were all better off when none of them advertised, but without the regulation, advertising on TV was a dominant strategy.

Before It Became Illegal, Cigarette Manufacturers Once Relied Heavily on TV