If Nike and Adidas Are Faced with the Game in the Figure

question 6

Multiple Choice

If Nike and Adidas are faced with the game in the figure shown,we can predict:

• A) an outcome that is good for society and less than ideal for the companies.
• B) an outcome that is less than ideal for society, but optimal for the companies.
• C) that both will follow their dominant strategy and society will lose.
• D) None of these is likely to happen.