George and Charlotte are competitors in a local market.Each is trying to decide if it is better to advertise on TV,on radio,or not at all.If they both advertise on TV,each will earn a profit of $3000.If they both advertise on radio,each will earn a profit of $5000.If neither advertises at all,each will earn a profit of $10,000.If one advertises on TV and the other advertises on radio,then the one advertising on TV will earn $4000 and the other will earn $2000.If one advertises on TV and the other does not advertise,then the one advertising on TV will earn $8000 and the other will earn $5000.If one advertises on radio and the other does not advertise,then the one advertising on radio will earn $9000 and the other will earn $6000.If both follow their dominant strategy,what will George do and how much will he earn

Question

Quizplus · Accepted Answer

The dominant strategy for both George and Charlotte is not to advertise, as it results in the highest profit of $10,000 for each.

George and Charlotte Are Competitors in a Local Market