In a one-shot game, if you advertise and your rival advertises, you will each earn $5 million in profits. If neither of you advertise, your 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 your rival will make $3 million. If your rival advertises and you do not, you will make $1 million and your rival will make $3 million.
(a) Write the above game in normal form.
(b) Do you have a dominant strategy?
(c) Does your rival have a dominant strategy?
(d) What is the Nash equilibrium for the one-shot game?
(e) How much would you be willing to bribe your rival not to advertise?