Question

Two competing electronics stores must decide each week whether to advertise in one and only one of the three media: TV, radio, or newspaper. From past experience they knovw that the payoff matrix in terms of percent of the market gained or lost to the other is as follows TV Radio Paper TV Radio 5 05 Paper 2-5 Find the value of this game and the optimal strategies. (Round your answers to two decimal places |%ofthe time, and in the newspaper %ofthe time. The "row player store should advertise on the TV The "column player store should advertise on the TV %ofthe time, on the radio %ofthe time, and in the newspaper %ofthe % of the time, on the radio The value of the game is % of the market.

Answer 1

row player

Tv=87.5%

radio=0%

newspaper=12.5%

column player

Tv=0%

radio=24%

newspaper=75%

value of game=25% of market