Announces its ad expenditure before delta does

Reference no: EM13695879

Suppose United chooses and announces its ad expenditure (budget) before Delta does.

a. What is the Nash equilibrium in this game? Explain how you arrived at your answer.

(Constructing a diagram (game tree) that shows the structure and payoffs of the game in answering this question is recommended but not required)

b. Is there a first- mover advantage or first-mover disadvantage in this game? Explain, why?

Reference no: EM13695879

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