Which of the following is a dominant strategy for this game?

Question

The Coca Cola Company (Coke) and Pepsico (Pepsi) must independently decide how much to spend on advertising this year (low, medium, or high advertising expenditures). Each firm's decision will affect its own profits, as well as profits of its competitor. The following payoff matrix shows the possible outcomes for this game between Coke and Pepsi. Here Coke is the row player and Pepsi the column player. Coke's available strategies are listed on the left (it can choose the rows labeled Low, Medium, or High). Similarly, Pepsi's available strategies are listed at the top (it can choose the columns labeled Low, Medium, or High). Interior cells show the profits (measured in millions of dollars) for each firm, with the profits for the row player (Coke) listed first, followed by profits for the column player Pepsi.

Low Medium High

Low 9 11, 7 10, 5 12

Medium 8 6, 8 7 , 8 10

High 10 4, 9 5 , 6 6

Answer 1

Pepsi going high is dominant.  I.e. pepsi going high gives it the best strategy in each case of what coke does.