# Why would this be described as a Prisoner's Dilemma game?

The following matrix shows the payoffs for an advertising game between Coke and Pepsi. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits; the first number in each cell is the payoff to Coke. (Numbers in millions.)

Coke (rows)/Pepsi (columns) Advertise Don't Advertise

Advertise (10, 10) (500, -50)

Don't Advertise (-50, 500) (100, 100)

Explain why this would be described as a Prisoner's Dilemma game.

Explain the probable outcome of this game.

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#### Solution Summary

This solution discusses why this game fits the zero-sum framework of the prisoner's dilemma and demonstrates the probable outcome of the game.

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