Godrickporter and Star Connections are the only two airport shuttle and limousin

Question

Godrickporter and Star Connections are the only two airport shuttle and limousine rental service companies in th mid-sized town of Godrick Hollow. Each firm must decide on whether to increase its advertising spending to compete for customers. Table 14-1 shows the payoff matrix for this advertising game. Refer to Table 14-1. Is there a dominant strategy for Star Connections and if so, what is it? No, its outcome depends on what Godrickporter does. Yes, Star Connections should increase its advertising spending. Yes, Star Connections should reduce its advertising spending. Yes, Star Connections' dominant strategy is to collude with Godrickporter. Refer to Table 14-1. What is the Nash equilibrium in this game? Godrickporter increases its advertising budget, but Star Connections does not. Star Connections increases its advertising budget, but Godrickporter does not. There is no Nash equilibrium. Both Godrickporter and Star Connections increase their advertising budgets.

Explanation / Answer

8. No, it's outcome depens on what godrickporter does.

9 A Godrickporter increases its advertizing budget, but star connections doesn't.

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