Cade D.

asked • 12/17/20

Create a normal form game for two firms called GM and P&W, respectively.

Prior to regulation by the federal government, many folks believed that the tobacco industry was characterized by a prisoner's dilemma in that tobacco firms all spent lots of money on advertising and had sales of X, but would 2 have preferred to simply cooperate by not spending money on advertising while getting sales of just a little bit less than X. Create a normal form game for two firms called GM and P&W, respectively. Each firm has two strategies (advertise, don't advertise). In your game create payoffs that satisfy the definition of a prisoner's dilemma.

1 Expert Answer

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Laura M. answered • 01/18/21

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