Your company and a competitor are deciding whether to invest in electric car charging networks. The networks would duplicate each other, and if both companies were to invest, they would both incur losses. Your boss is thinking of being first to commit the investment. Which model of game theory should you use to analyze this situation?

Question

Quizplus · Accepted Answer

The situation involves sequential decision-making (your company deciding first), which is best analyzed using a game in extensive form, representing the order of moves and possible outcomes.

Your Company and a Competitor Are Deciding Whether to Invest