a. Write down the studios’ payoffs from different combinations of actions. Provide the payoffs in two separate payoff matrices, where each matrix reflects a different action played by MGM.
b. Suppose studios make release date choices simultaneously. Determine the Nash equilibrium(a).
c. Now suppose that the game is played sequentially, with Marvel announcing first, followed by Warner Brothers, and finally by MGM. Draw the game tree. What is the unique subgame perfect Nash equilibrium?
d. Suppose that you are an executive at Warner Brothers in charge of marketing strategy. You learn that Marvel is going to announce the release date of Black Widow in a week. You also realize that by investing an extra $40 million in an ad campaign you would be able to move up your own announcement date for Wonder Woman 1984. (MGM still moves last in this game.) Should you do it? Explain your reasoning.