-Refer to the noncooperative, one-time, static game depicted in Figure 2.12. Rah-Rah and7th Heaven are convenience store chains that are considering opening a franchise in downtown Pawtucket, or just off Interstate 95. Monthly payoffs are in thousands of dollars. If larger payoffs are preferred, which convenience store chain has astrictly dominant strategy?
A) 7th Heaven
B) Rah-Rah
C) Both firms
D) Neither firm

Question

-Refer to the noncooperative, one-time, static game depicted in Figure 2.12. Rah-Rah and7th Heaven are convenience store chains that are considering opening a franchise in downtown Pawtucket, or just off Interstate 95. Monthly payoffs are in thousands of dollars. If larger payoffs are preferred, which convenience store chain has astrictly dominant strategy?
A) 7th Heaven 
B) Rah-Rah 
C) Both firms 
D) Neither firm

Quizplus · Accepted Answer

A strictly dominant strategy is one that results in a better outcome for a player, regardless of what the other player does. In the scenario described, without the specific payoff matrix provided, it's impossible to determine which firm, if any, has a strictly dominant strategy. However, the answer indicates that neither firm has a strictly dominant strategy, implying that the payoffs do not favor one strategy for either firm regardless of the opponent's choice.

-Refer to the Noncooperative, One-Time, Static Game Depicted in Figure