Economics

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In a one-shot game, if your rival advertises and you advertise, he will earn $7 million and you will earn $2 million in profits. If neither of you advertise, you will make $4 million and he will make $2 million. If you advertise and your rival does not, you will make $3 million and your rival will make $8 million. If your rival advertises and you do not, he will make $1 million and you will make $3 million


. Write the above game in normal form.

b. Do you have a dominant strategy? If yes, what is it?

c. Does your rival have a dominant strategy? If yes, what is it?

d. What is the Nash equilibrium for the one-shot game

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