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Google and Yahoo! are two large search engine companies.Combined,these companies control a large market share in the search engine industry.Both companies currently advertise their search engines on television,and each company earns a profit of $550 million.If both companies were to stop advertising on television,each would earn a profit of $600 million.If only one company were to stop advertising on television and the other company continued to do so,the company that stopped advertising would earn a profit of $200 million and the company that continued to advertise would earn a profit of $800 million.
Assume this is a simultaneous-move game where Google and Yahoo! choose to advertise or choose not to advertise,and Google and Yahoo! cannot collude.Explain the process of finding Google's dominant strategy.
Dynamic Interactions
Interactions characterized by continuous change, activity, or progress within a group or system, affecting each other's behaviors and attitudes.
Communication
The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feelings, etc., to someone else.
Mutual Reliance
A condition in which individuals or groups depend on each other for support, resources, or success.
Ecological Terms
Keywords and phrases used to describe interactions between organisms and their environments, focusing on relationships and consequences of those relationships.
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