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8. Shown at right is a payoff matrix for a price-cutting decision by Audi and Mazda. Payoff Matrix for Price Cutting Decisions A. Audi's dominant
8. Shown at right is a payoff matrix for a price-cutting decision by Audi and Mazda. Payoff Matrix for Price Cutting Decisions A. Audi's dominant strategy is to cut price, because $7 million is more than $6 Don't Cut Price --- Audi --- Cut Price million and $9 million is more than $5 million. $6 million $5 million OB. Mazda's dominant strategy is to cut price, because $8 million is greater than $6 million and $10 million is greater than $7 million. Oc. Audi's dominant strategy is to not cut $6 million $8 million Don't Cut Price --- Mazda --- Cut Price price, because $9 million is more than $7 million. $7 million $9 million OD. Mazda does not have a dominant strategy. OE. Audi does not have a dominant strategy. $7 million $10 million
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