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Business, 17.04.2020 20:18 bobtothemaxthe1st

Suppose AT&T and T-Mobile are deciding whether to increase ad spending to promote their 4G LTE networks. If both companies increase ad spending, AT&T will earn $6 million and T-Mobile $4 million in profit. If both leave ad spending the same, AT&T will earn $8 million and T-Mobile $6 million in total profit. If one firm increases spending and the other leaves theirs the same, the firm which increases spending will earn new customers and increase profits to $7 million, while the other firm will be left with just $2 million.
Required:
a. Who are the players in this game? What are their strategies?
b. Draw a decision matrix showing the players, strategies, and payoffs.
c. What will be the outcome of this game?
d. Is there a Nash Equilibrium?

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