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 Star Connections 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 Star Connections and if so, what is it?

Quizplus · Accepted Answer

There is no dominant strategy for Star Connections because its outcome depends on what Godrickporter does. Depending on the actions of Godrickporter, both companies can either increase or maintain their advertising budgets. Therefore, the best choice for Star Connections cannot be determined by considering its own preferences alone.

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