Team-work Homework Assignment Example | Topics and Well Written Essays - 500 words

Team-work Homework - Assignment Example When the two companies do not advertise, both King and Babil Company will have a payoff of 150. This payoff is beneficial to the two companies compared to adverting process. In the domain strategy, the two companies that is King firm and Babil firm have a dominating choice of not advertising. Irrespective of the Babil decision, the King company will not take the risk of advertisement, lest King know the secret of the competitor. From the outcomes stipulated on the table, it is evident that high outcomes arise when the two companies decide not to advertise, independently. The two companies felt that rather than getting a payoff of 300 and 80 for their strategy, they feel it better to win 150 rather than making their products available to their public and their competitors. The best outcome for the dominant strategy is when King fails to advertisement, as well as Babil. In Nash equilibrium the two companies use the methods to predict the outcome of another company in the social arts. The payoff functions represent the firm’s preferences over the action profile of the company where the action profile of King and Babil will portray the list of actions. In this strategy, king will have an incentive in shying away from the advertisement after considering Babil options. Neither Babil not King shall have an incremental benefit of changing their motives. Under this strategy, just like other strategies discussed above, the nash equilibrium will be attained when the companies choose not to advertise their products. The outcome is illustrated as shown in the matrix