1. Godrickporter and Star Connections are the only two airport shut...

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1. Godrickporter and Star Connections are the only two airport shuttle and limousine rental service companies in the mid-sized town of Godrick Hollow. Each firm must decide whether to increase its advertising spending to compete for customers. The following figure shows the payoff matrix for this advertising game. Godrickporter's (G) Choices Increase Leave advertising advertising budget budget as is incresse advertising G: $16,000 profit G: $12,000 profit Star budget S $8,000 profit S: $15,000 profit Connections' (S) Cholces Leave advertising G: $8,000 profit G: $6,000 profit budget as is S: $10,000 profit S: $12,000 profit a. Is there a dominant strategy for Godrickporter and, if so, what is it? Explain. b. Is there a dominant strategy for Star Connections and, if so, what is it? Explain. d. What is (are) the Nash equilibrium(s) in this game? Explain

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Is there a dominant strategy for Godrickporter and, if so, what is it? Explain.
The dominant strategy for Godrickporter is to increase its advertising spending, whether star connections choose to advertise or not, as this will increase Godrickporter’s profits to the maximum at $16000; hence this is the dominant strategy of Godrickporter...

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