Which strategy leads to each restaurant receiving the


Two restaurants, A and B, are positioned at either end of a village and compete with one another for business. Each can adopt one of three strategies with respect to the evening menu and each restaurant has full information about the outcome of each possible pair of strategies available. Both restaurants decide their strategy for the evening meal simultaneously and can only change the strategy for the next evening meal - it is a one-shot game. Table records the payoffs to restaurant A and restaurant B for each possible combination of strategies.

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Question

1. Which strategy leads to each restaurant receiving the maximum possible payoff, taking into account the other restaurant's strategy?

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Strategic Management: Which strategy leads to each restaurant receiving the
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