Figure: Pricing Strategy in Cable TV Market II (Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II.The dominant strategy for CableSouth:

Question

Figure: Pricing Strategy in Cable TV Market II  (Figure: Pricing Strategy in Cable TV Market II) Look at the figure Pricing Strategy in Cable TV Market II.The dominant strategy for CableSouth:

Quizplus · Accepted Answer

The figure shows a Prisoner's Dilemma situation where both CableNorth and CableSouth have an incentive to charge a high price. However, if CableSouth charges a low price, it gains a larger share of the market than if it charges a high price. Therefore, the dominant strategy for CableSouth is to charge a low price, making choice B the best option.