This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
According to the figure shown,Dunkin Donuts:
A) should expand, regardless of what Starbucks chooses to do.
B) should not expand, regardless of what Starbucks chooses to do.
C) has first-mover advantage.
D) does not have a dominant strategy.

Question

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
According to the figure shown,Dunkin Donuts:
A) should expand, regardless of what Starbucks chooses to do. 
B) should not expand, regardless of what Starbucks chooses to do. 
C) has first-mover advantage. 
D) does not have a dominant strategy.

Quizplus · Accepted Answer

The Answer of  This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses)they will earn.
According to the figure shown,Dunkin Donuts:
A) should expand, regardless of what Starbucks chooses to do. 
B) should not expand, regardless of what Starbucks chooses to do. 
C) has first-mover advantage. 
D) does not have a dominant strategy.

This Figure Displays the Choices Being Made by Two Coffee