Solved

Table 14-1 LimoZeenz and AirPorter and Are the Only Two Airport Shuttle

Question 91

Multiple Choice
Table 14-1
  
LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 14-1 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 14-1.Is there a dominant strategy for LimoZeenz and if so, what is it?

Table 14-1
Table 14-1     LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 14-1 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount. -Refer to Table 14-1.Is there a dominant strategy for LimoZeenz and if so, what is it? A) No, its outcome depends on what AirPorter does. B) Yes, LimoZeenz should offer the mid-week discount. C) Yes, LimoZeenz should not offer the mid-week discount. D) Yes, LimoZeenz' dominant strategy is to collude with AirPorter.
LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 14-1 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 14-1.Is there a dominant strategy for LimoZeenz and if so, what is it?


A) No, its outcome depends on what AirPorter does.
B) Yes, LimoZeenz should offer the mid-week discount.
C) Yes, LimoZeenz should not offer the mid-week discount.
D) Yes, LimoZeenz' dominant strategy is to collude with AirPorter.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents