Table 11-4 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 11-4 shows the payoff matrix for this advertising game.
-Refer to Table 11-4.Is there a dominant strategy for Godrickporter and if so,what is it?

Question

Table 11-4  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 11-4 shows the payoff matrix for this advertising game.
-Refer to Table 11-4.Is there a dominant strategy for Godrickporter and if so,what is it?

Quizplus · Accepted Answer

Looking at the payoff matrix in Table 11-4, we can see that if Star Connections reduces its advertising spending, Godrickporter's best strategy is to increase its advertising spending, as it will result in a payoff of 4. On the other hand, if Star Connections also increases its advertising spending, Godrickporter's best strategy is to maintain its current level of advertising spending, resulting in a payoff of 3. Therefore, increasing advertising spending is Godrickporter's dominant strategy.

Table 11-4 Godrickporter and Star Connections Are the Only