The Ulysses Corporation and the Xenophon Company are the only producers of a sophisticated type of camera. They each can engage in either a high or a low level of advertising in trade journals. The payoff matrix is as follows:

a. Will Ulysses engage in a high or a low level of advertising in trade journals?
b. Will Xenophon engage in a high or a low level of advertising in trade journals?
c. Is there a dominant strategy for each firm?

Transcribed Image Text:

Xenophon Company Low level High level Low level $12 mm, $13 mm $11 mm, $12 mm Ulysses Corporation High level $13 mm, $12 mm $12 mm, $11 mm