Google and Yahoo! Are Two Large Search Engine Companies

question 37

Essay

Google and Yahoo! are two large search engine companies.Combined,these companies control a large market share in the search engine industry.Both companies currently advertise their search engines on television,and each company earns a profit of $550 million.If both companies were to stop advertising on television,each would earn a profit of $600 million.If only one company were to stop advertising on television and the other company continued to do so,the company that stopped advertising would earn a profit of $200 million and the company that continued to advertise would earn a profit of $800 million.
Assume this is a simultaneous-move game where Google and Yahoo! choose to advertise or choose not to advertise,and Google and Yahoo! cannot collude.Explain the process of finding Google's dominant strategy.

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Definitions:

Communication

The exchange of information, ideas, or feelings between individuals or groups.

Transmitting

The act of sending or conveying information, signals, or messages from one place or person to another.

Verbal

Relating to or consisting of words, especially spoken language, as opposed to non-verbal communication methods.

Nonverbal Communication

A form of communication without the use of spoken language, involving gestures, facial expressions, body language, and other visual cues.