An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 13

Two companies compete for a share of the soft drink market. Each has worked with an advertising agency to develop alternative advertising strategies for the coming year. A variety of television advertisements, newspaper advertisements, product promotions, and in-store displays have provided four different strategies for each company. The payoff table summarizes the gain in market share for Company A projected for the various combinations of Company A and Company B strategies. What is the optimal strategy for each company? What is the value of the game?