Table 14-1 LimoZeenz and AirPorter and Are the Only Two Airport Shuttle

Multiple Choice

Table 14-1

LimoZeenz and AirPorter and are the only two airport shuttle and limousine rental service companies in the mid-sized town of Shady Shores. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. Table 14-1 shows the payoff matrix for profits earned by each company based on either offering or not offering the discount.
-Refer to Table 14-1.Is there a dominant strategy for AirPorter and if so, what is it?

A) No, its outcome depends on what LimoZeenz does.
B) Yes, AirPorter should offer the mid-week discount.
C) Yes, AirPorter should not offer the mid-week discount.
D) Yes, AirPorter's dominant strategy is to collude with LimoZeenz.