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-2015Price : $27