I'm really struggling with this question. Below is the payoff matrix of a game
played by two firms who have to choose between whether to advertise or not advertise.
Firm A Strategy Advertise Don't Advertise
Advertise 4,4 20,1
Don't Advertise 1,20 10,10
I'm trying to understand what the nash equilibrium outcome is.
I've believe it occurs at (4,4...advertise/don't advertise)...but I'm not sure if I'm correct. Any help to fully understand this concept is greatly appreciated. Thank you for your time.