Coca Cola and Pepsi are both considering expensive advertising campaigns. Each company believes that
Question: Coca Cola and Pepsi are both considering expensive advertising campaigns. Each company believes that its campaign will be highly successful (meaning their sales go way up and the other company’s sales go way down) if the other company does not run a campaign. Each also believes that sales will not change if both companies run a campaign.
a) Is there a Nash equilibrium strategy? If so, identify it. If not, explain why not.
b) Is there a dominant strategy? If so, identify it. If not, explain why not.
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