Game Theory: Finding Nash Equilibria in Advertising Strategies

This exercise focuses on finding Nash equilibria in a game theory scenario involving three companies (C1, C2, and C3) competing for advertising slots. The goal is to determine the optimal strategies for each company based on the potential payoffs for different advertising choices. To answer the question, we need additional information about the specific scenario and payoffs involved. This includes:

• Payoff Structure: We need the specific payoffs for each company (C1, C2, and C3) for each possible combination of advertising choices (morning vs. evening). This information should be presented in two tri-matrices, one for the case C3 chooses to advertise in the morning and another for the case C3 chooses to advertise in the evening.
• Game Dynamics: Understanding the game dynamics is crucial. For example, is this a one-time interaction, or are the companies repeatedly making advertising decisions? Are there any communication or collusion possibilities?

Once these details are provided, we can analyze the tri-matrices and find the pure Nash equilibria. A Nash equilibrium occurs when no player can improve their payoff by unilaterally changing their strategy, given the strategies of the other players. The corresponding payoffs for C1, C2, and C3 will be determined based on the equilibrium strategies.