Therefore advertise is firm as dominant strategy 8

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Therefore, “Advertise” is Firm A’s dominant strategy.
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8 Dominant Strategies By the same token, “Advertise” is also Firm B’s dominant Strategy. Since both firms choose “Advertise”, (Advertise, Advertise) is the Nash equilibrium of this game. In the modified advertising game , Firm B has “Advertise” as the dominant strategy. Given that Firm B chooses “Advertise”, Firm A will choose “Don’t”. So (Ad, Don’t Ad) is the Nash equilibrium.
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