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-Consider the Entry Advertising Game Depicted in Figure 13

Question 21

Multiple Choice

  -Consider the entry advertising game depicted in Figure 13.8. Payoffs are in thousands of dollars. Suppose that there is a 70 percent probability that Goliath will advertize on the radio and an 30 percent probability that Goliath will advertise in newspapers regardless of the advertizing strategy adopted by David. If David is risk neutral, what is the subgame perfect equilibrium for this game? A)  {TV 6 Radio} B)  {TV 6 Newspapers} C)  {Magazines 6 Radio} D)  {Magazin es 6 Newspapers}
-Consider the entry advertising game depicted in Figure 13.8. Payoffs are in thousands of dollars. Suppose that there is a 70 percent probability that Goliath will advertize on the radio and an 30 percent probability that Goliath will advertise in newspapers regardless of the advertizing strategy adopted by David. If David is risk neutral, what is the subgame perfect equilibrium for this game?


A) {TV 6 Radio}
B) {TV 6 Newspapers}
C) {Magazines 6 Radio}
D) {Magazin es 6 Newspapers}

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