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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 CableNorth:
A) is to charge a high price.
B) is to charge a low price.
C) is to charge what CableSouth does.
D) does not exist.

Question

Use the following to answer questions:
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 CableNorth:
A) is to charge a high price. 
B) is to charge a low price. 
C) is to charge what CableSouth does. 
D) does not exist.

Quizplus · Accepted Answer

The dominant strategy for CableNorth is to charge a low price because it yields a better payoff regardless of what CableSouth decides to do.

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