Imagine CC management hired you to evaluate their pricing strategy in Storrs, CT, where the company only competed with one large rival. Currently, CC earns $12,200 per hour and CC's rival earns $12,000 per hour. Management envisioned three potential scenarios for future prices.

i. Both companies raised prices: CC would make $12,920 per hour and its rival would earn $12,880 an hour.

ii. The rival raised prices, while CC dropped theirs. Under this scenario CC expected to earn $11,900 per hour while the rival would make $13,500 per hour.

iii. CC raised prices, while the rival dropped theirs. CC would make $13,900 per hour and its rival $11,500 per hour.

Given these projections, USING GAME THEORY, characterize the strategic interaction described above in a matrix as if it were a one-shot simultaneous move game. How should we expect Clear Channel and its rival to bid, assuming they play a one-shot simultaneous move game?

How could Clear Channel and its rival reach a better outcome for themselves? Discuss at least three conceptually valid options that are both legal and ethical and how likely each is to succeed in this particular context.