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##### Megan and Amanda are both 7 years old

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Megan and Amanda are both 7 years old and operate lemonade stands. Megan lives on the east side of Welch;Avenue while Amanda resides on the west side of Welch Avenue. Each morning, the girls must decide whether;to place their stand on Welch Avenue or Lincoln Avenue. When they set their stand-up, they don't know what;the other will do and can't relocate. If both girls put their stand on Welch, both girls receive \$175 in profits. If;both girls put their stand on Lincoln, they each receive \$75 in profits. If one girl sets their stand on Welch while;the other operates on Lincoln, the stand on Welch earns \$300 in profits while the stand on Lincoln earns \$225.;Diagram the relevant pay-off matrix. Does either girl have a dominant strategy? Does the game have a Nash;equilibrium? What is the maximin strategy of each player in the game?

Paper#28047 | Written in 18-Jul-2015

Price : \$27