Game Theory. Jessica's, a local retailer of women's clothing is considering adoption of new Sunday hours between 12:00 PM and 6:00 PM. Jessica's is closed on Sundays. Of course, the consumer response to this extension in hours depends on the competitor response, if any. The following annual profit contributions (payoffs) are expected:

A. Which decision alternative would Jessica's choose given a secure strategy criterion? Explain.
B. Calculate the opportunity loss (or regret) matrix.
C. Which decision alternative would Jessica's choose if the company seeks to minimize opportunity cost? Explain.

Question

Game Theory. Jessica's, a local retailer of women's clothing is considering adoption of new Sunday hours between 12:00 PM and 6:00 PM. Jessica's is closed on Sundays. Of course, the consumer response to this extension in hours depends on the competitor response, if any. The following annual profit contributions (payoffs) are expected:
  
A. Which decision alternative would Jessica's choose given a secure strategy criterion? Explain.
B. Calculate the opportunity loss (or regret) matrix.
C. Which decision alternative would Jessica's choose if the company seeks to minimize opportunity cost? Explain.

Quizplus · Accepted Answer

The Answer of Game Theory. Jessica's, a local retailer of women's clothing is considering adoption of new Sunday hours between 12:00 PM and 6:00 PM. Jessica's is closed on Sundays. Of course, the consumer response to this extension in hours depends on the competitor response, if any. The following annual profit contributions (payoffs) are expected:
  
A. Which decision alternative would Jessica's choose given a secure strategy criterion? Explain.
B. Calculate the opportunity loss (or regret) matrix.
C. Which decision alternative would Jessica's choose if the company seeks to minimize opportunity cost? Explain.