The Nash equilibrium for the game isA) For both stores to advertiseB) For megastore to advertise and for superstore not to advertiseC) For megastore not to advertise and for superstore to advertiseD) For both stores to not advertise

Question

​The Nash equilibrium for the game isA) ​For both stores to advertiseB) For megastore to advertise and for superstore not to advertiseC) For megastore not to advertise and for superstore to advertiseD) ​For both stores to not advertise

Sameer Qaraeen · Accepted Answer

Final Answer : A, Explanation :  In a Nash equilibrium, each player's strategy is optimal given the other players' strategies. Without specific payoff matrices or further details about the game, the most common understanding of competitive advertising strategies suggests that both stores advertising is a Nash equilibrium, as neither store can benefit by unilaterally changing their strategy if the other store's strategy is fixed. This is because not advertising while the other does could lead to a significant loss in market share.

The Nash equilibrium for the game is

A) For both stores to advertise
B) For megastore to advertise and for superstore not to advertise
C) For megastore not to advertise and for superstore to advertise
D) For both stores to not advertise

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Learning Objectives

Related questions

​The Nash equilibrium for the game isA) ​For both stores to advertiseB) For megastore to advertise and for superstore not to advertiseC) For megastore not to advertise and for superstore to advertiseD) ​For both stores to not advertise

Definitions

Learning Objectives

Learning Objectives

Related questions

The Nash equilibrium for the game is

A) For both stores to advertise
B) For megastore to advertise and for superstore not to advertise
C) For megastore not to advertise and for superstore to advertise
D) For both stores to not advertise