Question

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?
Bright Sparkle
a)Strategy 1 Strategy 1
b)Strategy 1 Strategy 2
c)Strategy 2 Strategy 1
d)Strategy 2 No dominant strategy
e)No dominant strategy Strategy 1

Answer 1

Answer:

E) Bright: No dominant strategy, Sparkle: Strategy 1

Explanation:

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?

Bright: No dominant strategy, Sparkle: Strategy 1