A sequential game can be used to analyse whether a retail firm should build a large store or a small store in a city, when the correct choice depends on whether a competing firm will build a new store in the same city.Which of the following is used to analyse this type of decision?

Question

Quizplus · Accepted Answer

A decision tree is best suited to analyse sequential games where the choice of one player affects the subsequent choices of other players. In this case, the retail firm's decision to build a large or small store is dependent on the potential actions of the competing firm. Thus, a decision tree can be used to model various possible scenarios and outcomes based on different possible actions by both firms.

A Sequential Game Can Be Used to Analyse Whether a Retail