Two television networks are competing for viewer ratings on a given weeknight. Each has two shows to schedule across two time slots: 8:00-9:00 PM (non-prime) and 9:00-10:00 PM (prime). Their goal is to maximize their ratings. However, their ratings depend not only on their own scheduling choices but also on the decisions of their competitor.
The ratings outcomes for different scheduling choices are as follows:
If both firms schedule their bigger shows in the non-prime slot (8:00-9:00 PM), they each earn 3 ratings points.
If one firm places its bigger show in the prime-time slot (9:00-10:00 PM) while the other places it in the non-prime slot, the firm in the non-prime slot gains a competitive advantage, earning 4 points, while the other firm gets only 2 points (note: no typos; please maintain the given number)
If both firms schedule their bigger shows in the prime-time slot, they split the audience and end up with only 1 ratings point each