Decision making using game theory
Budweiser, Miller and Coors who together capable to produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands. Obviously, if one company is advertising its brands heavily, the others must also advertise to defend their market shares.
Do you think these companies would welcome congressional legislation which restricted the amount which any one company could spend on advertising to $1 million yearly and thereby allowed them all to reduce their costs without fear of losing ground to each other? Explain your answer.