3. CBS and NBC, two major networks, are competing for viewer ratings in the "early” prime time slot (8:00-9:00pm) and th

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3 Cbs And Nbc Two Major Networks Are Competing For Viewer Ratings In The Early Prime Time Slot 8 00 9 00pm And Th 1 (121.95 KiB) Viewed 102 times

3. CBS and NBC, two major networks, are competing for viewer ratings in the "early” prime time slot (8:00-9:00pm) and the “late” prime time slot (9:00-10:00pm) on a given weeknight. Each has two shows to fill these slots, and is juggling its lineup. Each network can choose to put its "bigger” show in the early slot, or place it in the late slot. The combination of decisions leads to the following “ratings points” results: NBC Early Late Early 20 +X; 25 24; 20 CBS Late 21, 26 23; 25 a) Assume that X=0, and that both networks make their decisions at the same time. (4 points) (i) Identify all dominant strategies (if any). (ii) Identify all Nash equilibria (if any). b) For what values of X, with X 0, does this game represent a Prisoner's Dilemma game? Briefly explain. (3 points)