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Consider the following payoff matrix for two competing firms, Firm Alpha and Firm Beta, which must decide simultaneously whether to launch a major or minor advertising campaign. The first number in each cell represents the profit for Firm Alpha, and the second number represents the profit for Firm Beta (in thousands of dollars).
| Firm Beta: Major Campaign | Firm Beta: Minor Campaign | |
|---|---|---|
| Firm Alpha: Major Campaign | (50, 40) | (70, 20) |
| Firm Alpha: Minor Campaign | (30, 60) | (60, 50) |
Statement: In this scenario, launching a major advertising campaign is the best choice for Firm Alpha, no matter which action Firm Beta takes.
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