In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program. The annual profits (in millions of dollars) associated with each strategy are summarized in the following table (where the first number is the payoff to Airline A and the second to Airline B)
a) Does either player have a dominant strategy? Explain.
b) Is there a Nash equilibrium in this game? If so what is it?
c) Is this game an example of the prisoners' dilemma? Explain.