In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.
-Game 8 shows the payoff matrix in terms of profit (in millions of dollars)for two possible strategies: advertise or do not advertise. Which of the following is a true statement?
A)Coke has a dominant strategy to not advertise.
B)Pepsi has a dominant strategy to not advertise.
C)The game has one Nash equilibrium.
D)The game has multiple equilibria.

Question

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. 
-Game 8 shows the payoff matrix in terms of profit (in millions of dollars)for two possible strategies: advertise or do not advertise. Which of the following is a true statement?
A)Coke has a dominant strategy to not advertise. 
B)Pepsi has a dominant strategy to not advertise. 
C)The game has one Nash equilibrium. 
D)The game has multiple equilibria.

Quizplus · Accepted Answer

A Nash equilibrium occurs when each player's strategy is optimal given the other player's strategy. In this game, there is one set of strategies where neither player can benefit by unilaterally changing their strategy, indicating a single Nash equilibrium.

In the Following Games, All Payoffs Are Listed with the Row