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

A dominant strategy is one that results in the highest payoff for a player regardless of what the other player does. If Star Connections' outcome depends on Godrickporter's actions, then there is no dominant strategy for Star Connections.

Table 14-1 Godrickporter and Star Connections Are the Only