If You and Your Rival Plan to Be in Business

question 107

Multiple Choice

If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for

• A)you and your rival to not advertise in any year.
• B)you and your rival to advertise every year.
• C)neither firm to advertise in early years, but to advertise in later years.
• D)each firm to advertise in early years, but not advertise in later years.

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Definitions:

Social Presence

The impression of being personable and available that a brand or individual projects on social media platforms.

Digital Native

A digital native is a person who has been exposed to digital technologies such as the internet and smartphones from an early age, making them naturally proficient with these technologies.

Social Entertainment

Forms of entertainment content shared and consumed within social media platforms that facilitate user interaction and co-creation.

Social Bookmarking

A method of saving, organizing, and sharing links to web pages on the internet using specialized sites.