Question: In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your rival will make $4 million and you will make $2 million. If you advertise and your rival does not, you will make $10 million and your rival will make $3 million. If your rival advertises and you do not, you will make $1 million and your rival will make $3 million.

1. Write the above game in normal form.
2. Do you have a dominant strategy?
3. Does your rival have a dominant strategy?
4. What is the Nash equilibrium for the one-shot game?
5. How much would you be willing to bribe your rival not to advertise?

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document