Question: computers. Each rm's market share and prots are a function of the magnitude of the promotional campaign used to promote its version of the chip.


computers. Each rm's market share and prots are a function of the magnitude of the promotional campaign used to promote its version of the chip. Also assume that only two strategies are available: a limited promotional campaign and an extensive promotional campaign. If the two rms engage in a limited promotional campaign each rm earns a prot of $7.5million and if both undertake an extensive promotional campaign, each rm earns prot of $5million. If either rm engages in a limited promotional campaign or the other rm undertakes an extensive promotional campaign, then the rm that adopts the extensive promotional campaign will increase its market share and earn a prot of $9million whereas the other rm earn $4million. 3) b) C) d) 6) Develop a payoff matrix In the absence of a binding agreement, determine the advertising strategy and minimum payoff for Hitachi. In the absence of a binding agreement, determine the advertising strategy and minimum payoff for Toshiba. Explain why the rms may choose not to play their dominant strategies. What is the dominant strategy if Hitachi moves rst?l Please draw the game tree diagram to support your answers
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