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Produces nine revenue scenarios

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Reference no: EM131961992

This is a 3 by 3 game. Two oligopolists Proctor & Gambling (PG) and Johnson & Johnson (JJ) and three advertising strategies (High ads cost, Medium or Low for each), which produces nine revenue scenarios. Ties are a possibility (Like two equally desired results). Answer the following questions:

Only one of the two oligopolists has a dominant strategy, which Oligopolist? And what is his dominant strategy?

If this was a cartel - where the two competitors co-decide their strategies - It is not difficult to see that they may improve their opportunities. What cell do you think they will end up choosing together? Why?

Reference no: EM131961992

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