Table 16-5
Two discount superstores (Ultimate Saver and SuperDuper Saver) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their stores and parking lots to accommodate potential growth in their customer base. The following table depicts the strategic outcomes that result from the game. Growth-related profits of the two discount superstores under two scenarios are shown.

-Refer to Table 16-5. Non-cooperative outcomes typically imply an outcome:

Question

Table 16-5
Two discount superstores (Ultimate Saver and SuperDuper Saver) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their stores and parking lots to accommodate potential growth in their customer base. The following table depicts the strategic outcomes that result from the game. Growth-related profits of the two discount superstores under two scenarios are shown.
 
-Refer to Table 16-5. Non-cooperative outcomes typically imply an outcome:

Quizplus · Accepted Answer

Non-cooperative outcomes typically imply a scenario where each player acts in their own self-interest, which can lead to a sub-optimal outcome for both parties. In this case, both Ultimate Saver and SuperDuper Saver could achieve higher profits if they cooperated and both expanded their stores and parking lots, but since they are acting independently, they end up with lower profits compared to the cooperative scenario. Therefore, the non-cooperative outcome is worse for both parties involved.

Table 16-5 Two Discount Superstores (Ultimate Saver and SuperDuper Saver) in a in a Growing