Question
In a one-shot game, if you advertise and your rival advertises, each of you will earn IDR 5 billion in profit. If neither of you
In a one-shot game, if you advertise and your rival advertises, each of you will earn IDR 5 billion in profit. If neither of you advertise, your competitors will make $4 billion and you will make $2 billion. If you advertise and your competitors don't, you will make Rp. 10 billion and your competitors will make Rp. 3 billion. If your competitors advertise and you don't, you will make Rp. 1 billion and your competitors will make Rp. 3 billion. (a) Make the game matrix above in normal form ! (b) Do you have a dominant strategy? (c) Does your rival have a dominant strategy? (d) Find the Nash balance for a one-shot game? (e) How much are you willing to bribe your competitors not to advertise?
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