Conceive of two competitors facing important strategic decisions where the payoff to each decision depends upon the reactions of the competitor. Firm A can choose either row in the payoff matrix defined below, whereas firm B can choose either column. For firm A the choice is either €œup€ or €œdown;€ for firm B the choice is either €œleft€ or €œright.€ Notice that neither firm can unilaterally choose a given cell in the profit payoff matrix. The ultimate result of this one-shot, simultaneous-move game depends upon the choices made by both competitors. In this payoff matrix, strategic decisions made by firm A or firm B could signify decisions to offer a money-back guarantee, lower prices, offer free shipping, and so on. The first number in each cell is the profit payoff to firm A; the second number is the profit payoff to firm B.

A. Is there a dominant strategy for firm A? If so, what is it?
B. Is there a dominant strategy for firm B? If so, what isit?

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Firm B Competitive Strategy Up Left Right Firm A S5 million, S10 milion S7.5 million, S4 million $1 million, S3.5 millonS5 million, S5 million Down