Companies A and B can compete on advertising or R&D. If company A choose advertising and company B choose R&D, the payoffs are (10, 70), where the first number is company A’s payoff. If company A choose R&D and company B choose advertising, the payoffs are (20, 40). If both companies choose advertising, the payoffs are (50, 25). If both companies choose R&D, the payoffs are (60, 35). Which of the following statements are not true?
A.
There is no pure strategy Nash Equilibrium of this game.
B.
Company A will choose adverting with probability 0.1.
C.
Company B will choose R&D with probability 0.375.
D.
Company A’ expected pay-off is 35 and Company B’ expected pay-off is 38