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Refer to the matrix below. The two non-collusive domestic airlines, Airline Q and Airline VB are playing a game where they have to choose whether
Refer to the matrix below. The two non-collusive domestic airlines, Airline Q and Airline VB are playing a game where they have to choose whether to "advertise" or "not" to promote their businesses. The outcomes of their profit (in $ '000 M) are summarized below.
Airline VB
Advertise No advertise
airline Q Advertise 60, 60 100, 50
No advertise 50, 100 80, 80
2. a.i) What is the dominant strategy for Airline "VB" and Airline "Q"?
a.ii) Is there a NASH equilibrium? If so, what is the profit of each airline?
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