Table 9-6 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 whether to increase its advertising spending to compete for customers. Table 9-6 shows the payoff matrix for this advertising game.
-Refer to Table 9-6.Is there a dominant strategy for Godrickporter and,if so,what is it?

Question

Table 9-6  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 whether to increase its advertising spending to compete for customers. Table 9-6 shows the payoff matrix for this advertising game.
-Refer to Table 9-6.Is there a dominant strategy for Godrickporter and,if so,what is it?

Quizplus · Accepted Answer

The payoff matrix shows that if Star Connections increases their advertising spending, Godrickporter's best response is to increase theirs as well, resulting in a higher payoff of $12,000 rather than $9,000. If Star Connections reduces their advertising spending, Godrickporter's best response is still to increase theirs as it would result in a higher payoff of $10,000 rather than $8,000. Therefore, Godrickporter's dominant strategy is to increase its advertising spending.

Table 9-6 Godrickporter and Star Connections Are the Only