What is the nash equilibrium

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Reference no: EM132072160

The following matrix shows the payoffs for a simultaneous-move one-shot advertising game between Firm A and Firm B. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits (in millions of dollars).

Company B

Advertise

Don't Advertise

Company A

Advertise

A. $10,  $5

B. $15,  $0 Don't  Advertise

C. $6,  $8

D. $10,  $2

a. Does either firm have a dominant strategy?

b. What is the Nash equilibrium (if any)?

Reference no: EM132072160

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