The profits of the four major networks

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The profits of the four major networks (CBS, NBC, ABC and Fox) depend significantly on the ratings of its prime time shows. The higher the ratings, the higher the price the network can charge for advertising and the higher the profits of the network. To keep things simple, we will focus on two networks, CBS and NBC, and two of the prime time spots, 8-9PM and 9-10PM. Each network needs to decide which time slot to place its hit show, 8-9PM or 9-10PM. The other time slot will be filled by a run of the mill show. The following payoff matrix shows the total number of viewers (in millions) if each network places its hit show in each of the time slots: CBS 8 - 9 PM time slot 9 -10 PM time slot NBC 8 - 9 PM time slot (36, 33) (39, 28) 9 -10 PM time slot (30, 36) (32, 30)

Reference no: EM13982786

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