Table 14-1

Godrickporter and Star Connections are the only two airport shuttle and limousine rental service companies in the mid-sized town of Godrick Hollow.Each firm must decide on whether to increase its advertising spending to compete for customers.Table 14-1 shows the payoff matrix for this advertising game.
-Refer to Table 14-1.Is there a dominant strategy for Godrickporter and if so, what is it?

Question

Table 14-1
  
Godrickporter and Star Connections are the only two airport shuttle and limousine rental service companies in the mid-sized town of Godrick Hollow.Each firm must decide on whether to increase its advertising spending to compete for customers.Table 14-1 shows the payoff matrix for this advertising game.
-Refer to Table 14-1.Is there a dominant strategy for Godrickporter and if so, what is it?

Quizplus · Accepted Answer

Based on the payoff matrix, increasing advertising spending yields a higher profit for Godrickporter regardless of Star Connections' decision. Therefore, Godrickporter has a dominant strategy to increase its advertising budget.

Table 14-1 Godrickporter and Star Connections Are the Only Two Airport Shuttle