-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 27

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is true?

• A) Firm A has a dominant strategy.
• B) Firm B has a dominant strategy.
• C) Neither firm entering is a Nash equilibrium.
• D) The outcome of the game is unpredictable.

---

Definitions:

Pearson Correlation

A statistical coefficient expressing the degree of linear relationship between two variables, measured on a scale from -1 to 1.

Ranking Data

A method of organizing data by assigning an ordinal or rank order to different values based on their size or importance.

Sample Spearman

Sample Spearman refers to the computation of Spearman's rank correlation coefficient on a sample data set to assess the monotonic relationship between two variables.

Rank Coefficient

A statistical measure that evaluates the strength and direction of a relationship between two ranked variables.