-The Pie-Eye and Red-Nose Beer Companies are considering their upcoming advertising campaigns. This noncooperative, one-time, static game is depicted in Figure 2.8, which summarizes the expected increase in profits from alternative advertising strategy profiles for both companies. What is the Nash equilibrium strategy profile for this game?
A) {Don't advertise on TV, Don't advertise on TV}
B) {Advertise on TV, Don't advertise on TV}
C) {Don't advertise on TV, Advertise on TV}
D) {Advertise on TV, Advertise on TV}
E) This game does not have a Nash equilibrium.

Question

-The Pie-Eye and Red-Nose Beer Companies are considering their upcoming advertising campaigns. This noncooperative, one-time, static game is depicted in Figure 2.8, which summarizes the expected increase in profits from alternative advertising strategy profiles for both companies. What is the Nash equilibrium strategy profile for this game?
A) {Don't advertise on TV, Don't advertise on TV} 
B) {Advertise on TV, Don't advertise on TV} 
C) {Don't advertise on TV, Advertise on TV} 
D) {Advertise on TV, Advertise on TV} 
E) This game does not have a Nash equilibrium.

Quizplus · Accepted Answer

The Answer of 
-The Pie-Eye and Red-Nose Beer Companies are considering their upcoming advertising campaigns. This noncooperative, one-time, static game is depicted in Figure 2.8, which summarizes the expected increase in profits from alternative advertising strategy profiles for both companies. What is the Nash equilibrium strategy profile for this game?
A) {Don't advertise on TV, Don't advertise on TV} 
B) {Advertise on TV, Don't advertise on TV} 
C) {Don't advertise on TV, Advertise on TV} 
D) {Advertise on TV, Advertise on TV} 
E) This game does not have a Nash equilibrium.

-The Pie-Eye and Red-Nose Beer Companies Are Considering Their Upcoming