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Table Nike and Reebok Advertising Game Use Table Nike and Reebok Advertising Game The sneaker...

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Table Nike and Reebok Advertising Game Use Table Nike and Reebok Advertising Game The sneaker industry is dominated by Nike and Reebok and each firm spends a lot of money on advertising Suppose each firm is considering a costly television commercial during the World Series The table shows the payoff matrix of profits that each firm would receive from its advertising decision given the advertising decision of its rival Profits in each cell of the payoff matrix are given as Nike Reebok If each firm independently decides whether to advertise the Nash equilibrium is for Nike and Reebok during the World Series Nike and Reebok Advertising Game Reebok advertises Reebok does not advertise Nike advertises 800 700 1 500 600 not to advertise to advertise not to advertise not to advertise Nike does not advertise 650 900 1 000 800

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