The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa Bay market for newspapers. Recently, both newspapers considered changing the prices they charge for their Sunday editions. Suppose they considered the following payoff table for making a simultaneous decision to charge either a low price of $0.50 or a high price of $1.00.  Tampa’s profits are shown in regular type.  St. Petersburg’s profits are shown in bold. 2. St. Petersburg Times' dominant strategy is ____________ (low price, high price, it has no dominant strategy

Principles of Economics 2e
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Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
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The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa Bay market for newspapers. Recently, both newspapers considered changing the prices they charge for their Sunday editions. Suppose they considered the following payoff table for making a simultaneous decision to charge either a low price of $0.50 or a high price of $1.00.  Tampa’s profits are shown in regular type.  St. Petersburg’s profits are shown in bold.

2. St. Petersburg Times' dominant strategy is ____________ (low price, high price, it has no dominant strategy).

St Pete Times
A.
Low price $120,000
High Price
C.
Low Price
Tampa Tribune
$90,000
$100,000
$54,000
High Price
B.
$54,000
D.
$88,000
$120,000
$90,000
Transcribed Image Text:St Pete Times A. Low price $120,000 High Price C. Low Price Tampa Tribune $90,000 $100,000 $54,000 High Price B. $54,000 D. $88,000 $120,000 $90,000
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