138k views
2 votes
Patrick's Pie is currently the only pizzeria in College Town. It can either advertise or not advertise.

Dee's Pizzeria is contemplating whether to enter or stay out of the College Town market. Each pizza
establishment independently and simultaneously makes its decision. The payoff matrix above
shows the profits for each combination of decisions, and both players have complete information.
The first entries in the payoff matrix are Patrick's profit, and the second entries are Dee's profit.
What actions maximize the combined total profits for Patrick's Pie and Dee's Pizzeria?
Your answer:​

User Louahola
by
3.5k points

1 Answer

4 votes

Answer:

the question is incomplete, the exercise graph is attached and the request is answered.

In order to maximize the total combined profits between the two pizzerias, you can choose to look for the highest total reward, a value that we deduce is 175, at which time Patrick announces himself and Dee is left out by his own decision.

Patrick's Pie is currently the only pizzeria in College Town. It can either advertise-example-1
User Jay Marz
by
3.8k points