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City Wheels Maintain Fare Lower Fare Maintain Fare $150, $180 $130, $160 Easy Ride 160, 130 180, 150 Lower Fare $ $ $ $ (Easy

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City Wheels Maintain Fare Lower Fare Maintain Fare $150, $180 $130, $160 Easy Ride 160, 130 180, 150 Lower Fare $ $ $ $ (Easy Ride, City Wheels) Easy Ride payout to the left of the comma City Wheels payout to the right of the comma The above payout matrix is for the advertising decisions of Firm A and Firm B. 1. What is the Dominant Strategy for Easy Ride? 2. What is the Dominant Strategy for City Wheels? 3. The rms can only their own information prior to the selection. Which rm would want to announce their selection second? . Easy Ride . City Wheels - Both - Neither (they both want to announce rst) Explain your selection

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