What do you predict will be the outcome of this strategic interaction between these two firms?

s. Each of these new car dealers have thre Show more There are two Ford dealerships in town: Bills and Jeremys. Each of these new car dealers have three alternative strategies that they could pursue: (1)highlight . Each of these new car dealers have three alternative strategies that they could pursue: (1) highlight service department quality; (2) be the low-price dealer on all automobile sales; or (3) hire a well-known sports star and engage in extensive advertising in outlying small towns and rural areas. The payoffs (profits) of these strategies are listed below with Bills profits being the first number in each cell. Jeremys Jeremys Jeremys Jeremys Jeremys Service Low Cost Advertising Bills Service 24 33 18 36 15 42 Bills Low Cost 36 27 24 30 18 24 Bills Advertising 33 18 30 24 12 18 a) Does either firm have a dominant strategy? How about a dominated strategy? If so explain why and what the implications are for their strategy. b) What do you predict will be the outcome of this strategic interaction between these two firms? i.e. what strategy will each firm choose? Briefly explain why. Show less

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