Suppose that there are two hotels competing in the market. If both of them advertise, A will earn a profit of $150 million, whereas B will earn 250 million. If they both do not advertise, A will earn 250 million profit, whereas B will earn 200 million. If hotel A advertise while hotel B does not, A will earn a profit of 200 million, while hotel B's profit will be 300 million. If hotel B advertise while hotel A does not, A will earn a profit of 100 million, while hotel B's profit will be 300 million.

Q: Consider, alternatively, hotel A can choose whether to advertise in advance. Assuming the same payoffs for the hotels, consider a game to describe the situation. Find the subgame perfect Nash equilibrium.