Table 111 Godrickporter and Star Connections Are the Only Two

question 133

Multiple Choice

Table 11.1 Godrickporter and Star Connections are the only two airport shuttle and limousine rental service companies in the mid-sized town of Godrick Hollow.Each firm must decide on whether to increase its advertising spending to compete for customers.Table 11.1 shows the payoff matrix for this advertising game.
-Refer to Table 11.1.Is there a dominant strategy for Godrickporter and, if so, what is it?

• A)No, its outcome depends on what Star Connections does.
• B)Yes, Godrickporter should increase its advertising spending.
• C)Yes, Godrickporter should reduce its advertising spending.
• D)Yes, Godrickporter's dominant strategy is to collude with Star Connections.