Chapter 9.5, Problem 21E

MARKETING STRATEGIES Two dentists, Lydia Russell and Jerry Carlton, are planning to establish practices in a newly developed community. Both have allocated approximately the same total budget for advertising in the local newspaper and for the distribution of fliers announcing their practices. Because of the location of their offices, Russell will get $48\%$ of the business if both dentists advertise only in the local newspaper; if both dentists advertise through fliers, then Russell will get $45\%$ of the business; if Russell advertises exclusively in the local newspaper and Carlton advertises exclusively through fliers, then Russell will get $65\%$ of the business. Finally, if Russell advertises through fliers exclusively and Carlton advertises exclusively in the local newspaper, then Russell will get $50\%$ of the business.

a. Construct the payoff matrix for the game, and show that it is not strictly determined.

b. Find the optimal strategy for both Russell and Carlton.