Two Cigar makers are trying to determine whether or not to advertize their products on TV, and the effect on their profits The Govt is likely to ban Advt related to Smoking on TV, and would charge a Penalty Surcharge Tax of $30m for any smoking advertisement on mass media Profit Payoff Matrix Cool King Smooth Price If there a Dominant Strategy here, is it a Nash Equilibrium Select one a Does Not Advertize Does Not Advertize b There is No Nash Equilibrium c Does Not Advertize Advertize d Advertize Does Not Advertize e Advertize Advertize Advertisers Does Not Advertize Advertizes $150m, $150,m $80m, $180m Does Not Advertize $180m, $80m $120m, $120m

Question: Two Cigar makers are trying to determine whether or not to advertize their products on TV, and the effect on their profits. The Govt. is

Two Cigar makers are trying to determine whether or not to advertize their products on TV, and the effect on their profits. The Govt. is likely to ban Advt. related to Smoking on TV, and would charge a Penalty Surcharge Tax of $30m for any smoking advertisement on mass media.

Profit Payoff Matrix

Cool King

Smooth Price

Advertisers Does Not Advertize Advertizes $150m, $150,m $80m, $180m Does Not Advertize

If there a Dominant Strategy here, is it a Nash Equilibrium?

Select one:

a. Does Not Advertize; Does Not Advertize

b. There is No Nash Equilibrium

c. Does Not Advertize; Advertize

d. Advertize; Does Not Advertize

e. Advertize; Advertize

Advertisers Does Not Advertize Advertizes $150m, $150,m $80m, $180m Does Not Advertize $180m, $80m $120m, $120m

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