QUESTION 20

Consider the following advertising decision game between Coke and Pepsi:

What is the likely outcome of this advertising decision problem?

Pepsi's budget Low Medium High A B C Low $400, $400 $320, $720 $560, $600 D F F Coke's budget Medium $500, $300 $450, $525 $540, $500 G H High $375, $420 $300, $378 $525, $750 Payoffs in millions of dollars of annual profit