14.3 Sequential Dynamic Games
-The above figure shows the payoff to two gasoline stations,A and B,deciding to operate in an isolated town.If firm A chooses its strategy first,then

Question

14.3 Sequential Dynamic Games 
-The above figure shows the payoff to two gasoline stations,A and B,deciding to operate in an isolated town.If firm A chooses its strategy first,then

Quizplus · Accepted Answer

If firm A chooses its strategy first, it will enter the market to capture potential profits. Firm B will also enter because it can still earn a positive payoff despite firm A's presence.