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Disney and Paramount are both releasing an animated movie at the same time. Each company is fairly well known, and they are both deciding between pursuing two advertising strategies. Each firm knows that its profits will be affected by its own decision and the decision of the competing firm. The payoff matrix below contains the estimated profits for both companies for all possible strategies. Paramount's profits are in the lower (green) triangle of each cell and Disney's profits are in the upper (blue) triangle of each cell. Profits (payoffs) are in millions of dollars. What is Disney's dominant strategy What is the Nash equilibrium in this game

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To select the optimal course of action, we can create a matrix.

      Disney

                                 strategy 1             strategy 2

                                  $75 /                   $25 /

         strategy 1                     $75                $300

Paramount

         strategy 2        $300 /                 $150 /

                                              $25                 $150

What is Disney's prevailing tactic?

Disney's most effective method is number one, with an anticipated value of $375 ($75 + $300). The projected value of Strategy 2 is only $175.

The most prevalent strategy at Paramount is strategy 1, with an anticipated value of $375 ($75 + $300). The projected value of Strategy 2 is only $175.

What is the game's Nash equilibrium?

Because Strategy 1 is both sides' (Disney and Paramount) dominating strategy, there is a Nash equilibrium.

To learn more about Nash Equilibrium here:

https://brainly.com/question/16202824

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