Use the Following to Answer Questions

question 163

Multiple Choice

Use the following to answer questions:
-(Table: Coke and Pepsi Advertising Game) Look at the table Coke and Pepsi Advertising Game. The soft-drink industry is dominated by Coke and Pepsi, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during halftime of the Super Bowl. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of their rival. Profits in each cell of the payoff matrix are given as (Coke, Pepsi) . If each firm makes the decision whether to advertise on the Super Bowl independently, the Nash equilibrium is for Coke _____ and Pepsi _____ during the Super Bowl.

• A) to advertise; to advertise
• B) not to advertise; not to advertise
• C) not to advertise; to advertise
• D) to advertise; not to advertise

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Definitions:

Nonverbal Communication

The transmission of wordless cues between people.

Transmission

The process of sending or conveying information, energy, or power from one place or person to another.

Subtle Messages

Indirect or not immediately obvious communications that convey information or sentiments in understated or nuanced ways.

Electronic Communication

The transfer of information using electronic technologies including email, text messages, and social media platforms.