Table 9.1 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 9.1 shows the payoff matrix for this advertising game.
-Refer to Table 9.1.Is there a dominant strategy for Godrickporter and,if so,what is it?

Question

Table 9.1  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 9.1 shows the payoff matrix for this advertising game.
-Refer to Table 9.1.Is there a dominant strategy for Godrickporter and,if so,what is it?

Quizplus · Accepted Answer

Based on the payoff matrix, the dominant strategy for Godrickporter is to increase its advertising spending regardless of what Star Connections chooses to do. If Star Connections also increases its advertising spending, Godrickporter will still have a higher payoff of $8,000 compared to Star Connections' $6,000. If Star Connections reduces its advertising spending, Godrickporter's payoff will increase to $9,000. Therefore, increasing advertising spending is the best choice for Godrickporter.

Table 91 Godrickporter and Star Connections Are the Only Two