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Two soft-drinks producers are planning about whether to advertise for their own products and will take their decision in a simultaneous move. If both advertise,
Two soft-drinks producers are planning about whether to advertise for their own products and will take their decision in a simultaneous move. If both advertise, each earns profits of $0 million. If neither advertises, each earns profits of $10 million. If one advertises and the other does not, the firm that advertises earns $25 million and the other firm loses $5 million. Represent the above details in the form of a normal-form game (pay-off matrix). How many Nash equilibrium(s) can emerge in the above scenario?
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