(Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok

Multiple Choice

(Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok Advertising Game. The sneaker industry is dominated by Nike and Reebok, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during the World Series. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of its rival. The BEST response for Nike would be:
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A) advertise.
B) does not advertise.
C) advertise only if Reebok advertises.
D) do not advertise if Reebok advertises.