Table 17-3 Suppose that Robert and Howard own the only two movie studios in California. Each producer must choose between a low budget and a high budget strategy for his next film. The economic profit from each strategy is indicated in the table below:   11. Refer to Table 17-3. Does Howard have a dominant strategy? If so, describe it. 12. Refer to Table 17-3. Does Robert have a dominant strategy? If so, describe it.

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Table 17-3

Suppose that Robert and Howard own the only two movie studios in California. Each producer must choose between a low budget and a high budget strategy for his next film. The economic profit from each strategy is indicated in the table below:

 

11. Refer to Table 17-3. Does Howard have a dominant strategy? If so, describe it.

12. Refer to Table 17-3. Does Robert have a dominant strategy? If so, describe it.

Howard
Low budget
High budget
Low budget Howard's profit = $19,000 | Howard's profit = $4,000
Robert's profit = $19,000 Robert's profit = $24,000
Howard's profit = $25,000 Howard's profit = $21,000
Robert's profit = $21,000
Robert
High
budget
Robert's profit = $5,000
Transcribed Image Text:Howard Low budget High budget Low budget Howard's profit = $19,000 | Howard's profit = $4,000 Robert's profit = $19,000 Robert's profit = $24,000 Howard's profit = $25,000 Howard's profit = $21,000 Robert's profit = $21,000 Robert High budget Robert's profit = $5,000
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