Table 14-1 LimoZeenz and AirPorter and Are the Only Two Airport Shuttle

question 93

Multiple Choice

Table 14-1

LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 14-1 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 14-1.Is there a dominant strategy for LimoZeenz and if so, what is it?

• A)No, its outcome depends on what AirPorter does.
• B)Yes, LimoZeenz should offer the mid-week discount.
• C)Yes, LimoZeenz should not offer the mid-week discount.
• D)Yes, LimoZeenz' dominant strategy is to collude with AirPorter.

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