This payoff matrix gives values for strategies S1, S2, and S3 for the Bigg Company and competitive strategies CA1, CA2, and CA3 for the Large Company.From Bigg's point of view, the S1 maximum regret for CA1 is 8.

Question

Quizplus · Accepted Answer

Maximum regret is the difference between the highest payoff and the payoff obtained from choosing a different strategy. Here, the highest payoff Bigg can get by choosing strategy S1 against CA1 is 18, and the payoff obtained by choosing strategy S2 instead is 10, which gives a regret of 8. Therefore, the statement is true.

This Payoff Matrix Gives Values for Strategies S1, S2, and S3