Question
In a one-shot game, if John advertises and Jane advertises, they will each earn $5 million in profits. If neither of them advertises, Jane will
In a one-shot game, if John advertises and Jane advertises, they will each earn $5 million in profits. If neither of them advertises, Jane will make $4 million and John will make $2 million. If John advertises and Jane does not, John will make $10 million and Jane will make $3 million. If Jane advertises and John does not, John will make $1 million and Jane will make $3 million. Complete the following normal game form (payoff matrix) according to the information given. What are the values of 1-8? Identify your answers according to the numbers provided in the matrix.Does John have a dominant strategy? Does Jane have a dominant strategy? What is the Nash equilibrium for the one-shot game? How much would John be willing to bribe Jane not to advertise?
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