Suppose United chooses and announces its ad expenditure (budget) before Delta does.
a. What is the Nash equilibrium in this game? Explain how you arrived at your answer.
(Constructing a diagram (game tree) that shows the structure and payoffs of the game in answering this question is recommended but not required)
b. Is there a first- mover advantage or first-mover disadvantage in this game? Explain, why?