Gym X and Bodyworks are both going to open an exercise facility in the local market. Each company may decide to open a facility concentrating on cardio equipment for customers interested in mostly aerobic workouts. Another alternative for each company is to open a facility concentrating on muscle building equipment for customers interested mostly in bodybuilding workouts. The pay-off matrix for each company dependent upon their strategies and that of their competitor is given below.
Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game?

Question

Gym X and Bodyworks are both going to open an exercise facility in the local market. Each company may decide to open a facility concentrating on cardio equipment for customers interested in mostly aerobic workouts. Another alternative for each company is to open a facility concentrating on muscle building equipment for customers interested mostly in bodybuilding workouts. The pay-off matrix for each company dependent upon their strategies and that of their competitor is given below.  
Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game?

Quizplus · Accepted Answer

The Answer of Gym X and Bodyworks are both going to open an exercise facility in the local market. Each company may decide to open a facility concentrating on cardio equipment for customers interested in mostly aerobic workouts. Another alternative for each company is to open a facility concentrating on muscle building equipment for customers interested mostly in bodybuilding workouts. The pay-off matrix for each company dependent upon their strategies and that of their competitor is given below.  
Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game?

Gym X and Bodyworks Are Both Going to Open an Exercise