Table 17-13
Two home-improvement stores (Lopes and HomeMax) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from the game. Increases in annual profits of the two home-improvement stores are shown in the table below.
-Refer to Table 17-13. Pursuing its own best interest, HomeMax will

Question

Table 17-13
Two home-improvement stores (Lopes and HomeMax) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from the game. Increases in annual profits of the two home-improvement stores are shown in the table below. 
-Refer to Table 17-13. Pursuing its own best interest, HomeMax will

Quizplus · Accepted Answer

Regardless of Lopes' decision, HomeMax will increase the size of its store and parking lot to maximize its profits. This is because both options in the game (increase or don't increase) result in higher profits for HomeMax if they themselves increase the size of their store and parking lot. Therefore, it is in HomeMax's best interest to pursue this strategy regardless of Lopes' decision.

Table 17-13 Two Home-Improvement Stores (Lopes and HomeMax) in a Growing Urban