Economics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 4

ADVANCED Suppose you are playing a game in which you and one other person each pick a number between 1 and 100, with the person cto some randomly selected number between 1 and 100 winning the jackpot. (Ask your instructor to fund the jackpot.) Your opponent picks first. What number do you expect her to choose? Why? What number would you then pick? Why are the two numbers so cHow might this example relate to why Home Depot and Walgreens and Rite-Aid, McDonald's and Burger King, Borders and Barnes Noble, and other major pairs of rivals so cto each other in many will-defined geographical markets that are large enough for both firms to be profitable? L08