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Is there a dominant strategy for baine

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Reference no: EM132103613

Two interior design companies, Alistair and Baine, are competing for customers and, if they both advertise, they would each earn $30 million in profits. If neither advertises, they each earn $50 million in profits. If one advertises and the other doesn't, the firm that advertises earns $40 million in profit while the other earns $20 million in profit.

  1. Is there only one or two Nash equilibriums here and Is there a dominant strategy for Baine?

Reference no: EM132103613

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