Game theory provides a useful way to analyze decision making

Game theory provides a useful way to analyze decision making when the financial outcomes of your actions are not known with certainty. Consider the following payoff matrix describing Seaworld\'s profits depending on how Disney reacts to an aggressive price-cutting strategy. Is there a dominant strategy for Disney to pursue regardless of seaworld reacts? What policy should Sea World choose? Explain. Is there a dominant strategy for Seaworld to pursue regardless of how Disney reacts? What policy should Sea World choose? Explain. Given the payoffs above will both be better off as a result of collusion (assuming the Justice Department does not catch them)? Explain.

Solution

In this question, I am seeing in first part, that you (student) are (is) using the word SeaWorld in place of Disney by cutting it with pen. Similarly, word Disney is being used in place of SeaWorld by cutting it with pen or pencil. But when policy is being asked of SeaWorld then you are not cutting it through with pen or pencil so is this an error or your intention.