In a one shot game, if you advertise and your rival advertise, you can each earn $5 million in profits. If either of you advertises, you rival will make$4 million and you will make $2 million. If you advertise and your rival does not, you will make $10 million and you rival will make $3 million. If your rival advertises and you do not, you will make$1 million and you rival will make $3 million.
a. Write the above game in normal form?
b. Identify any dominant strategy that you have?
c. Identify and dominant strategy your rival has?
d. What is the Nash equilibrium for the one shot game?
e. If you were the type of manage that would be inclined to offer a bribe to your rival to not advertise, what is the most you are willing to offer?