Casey's General Store is considering placing a store in Hamilton, Missouri. If they place the store in Hamilton and no other convenience store enters the Hamilton market, they'll earn profits of $100,000 per year. If competitors do enter, Casey's profits as well as the competitors' profits will be reduced to $0 per year. If a competitor enters the Hamilton market and Casey's does not, the competitor's profits will be $100,000 per year. 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

Casey's General Store is considering placing a store in Hamilton, Missouri. If they place the store in Hamilton and no other convenience store enters the Hamilton market, they'll earn profits of $100,000 per year. If competitors do enter, Casey's profits as well as the competitors' profits will be reduced to $0 per year. If a competitor enters the Hamilton market and Casey's does not, the competitor's profits will be $100,000 per year.  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 Casey's General Store is considering placing a store in Hamilton, Missouri. If they place the store in Hamilton and no other convenience store enters the Hamilton market, they'll earn profits of $100,000 per year. If competitors do enter, Casey's profits as well as the competitors' profits will be reduced to $0 per year. If a competitor enters the Hamilton market and Casey's does not, the competitor's profits will be $100,000 per year.  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?

Casey's General Store Is Considering Placing a Store in Hamilton