Refer to the figure below. If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A)kept its rates high.
B)offered reduced rates.
C)agreed with Row Resorts to reduce their rates at exactly the same time.
D)chose either strategy because it will have the same payoff in either case.

Question

Refer to the figure below.  If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A)kept its rates high. 
B)offered reduced rates. 
C)agreed with Row Resorts to reduce their rates at exactly the same time. 
D)chose either strategy because it will have the same payoff in either case.

Quizplus · Accepted Answer

If Row Resorts keeps its rates high, then Column Cruises would want to offer reduced rates to attract customers away from Row Resorts. This would result in the highest payoff for Column Cruises.

Refer to the Figure Below