Two competing companies, Company A and Company B$,$ are deciding whether to spend a significant

amount of money on advertising for the holiday season. The results of their decisions are summarized

below:

$$ If both companies advertise, they each gain a moderate number of new customers but incur high

advertising costs. Net profit: $$2$ million each.

$$ If neither company advertises, they save money but share the market equally. Net profit: $$5$

million each.

$$ If one company advertises and the other does not, the advertising company gains a large

market share. The advertiser earns $$10$ million, while the other company earns only $$1$ million.

Each company must decide simultaneously without knowing the other$$s choice.

Company B

Company A Advertise $(2,2)(10,1)$

Don$$t Advertise $(1,10)(5,5)$