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LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service LimoZeenz (LZ) companies in the mid - sized town of Shady
LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service LimoZeenz (LZ) companies in the mid - sized town of Shady Shores. Each firm must decide on whether to offer its Offer customers a mid - week discount for airport transportation. The payoff matrix shows the profits Don't offer earned by each company based on either offering or not offering the discount. LZ earns LZ earns Don't $16,000 $12,000 Is there a dominant strategy for LimoZeenz and if so, what is it? AP earns AP earns offer $8,000 $15,000 O A. Yes, LimoZeenz should offer the mid - week discount. AirPorter (AP) LZ earns LZ earns O B. No, its outcome depends on what AirPorter does. Offer $8,000 $6,000 AP earns AP earns O C. Yes, LimoZeenz should not offer the mid - week discount. $10,000 $12,000 O D. Yes, LimoZeenz' dominant strategy is to collude with AirPorter
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