Economic 3. In Las Vegas the strip is 10 miles long. Assume that souvenir seeking consumers are
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3. In Las Vegas "the strip" is 10 miles long. Assume that souvenir seeking consumers are uniformly distributed along the strip. They will not go home without purchasing a souvenir. It's hot in the desert, and they know that souvenir prices are the same everywhere, so they go to the nearest souvenir shop. If there is more than one shop at the same location, the shops split the business evenly. a. If there are two souvenir shops, and they can choose their locations simultaneously, find the pure strategy Nash equilibrium or equilibria, if there are any. b. Now assume that there are three souvenir shops. Find the pure strategy Nash equilibrium or equilibria, if there are any 3. In Las Vegas "the strip" is 10 miles long. Assume that souvenir seeking consumers are uniformly distributed along the strip. They will not go home without purchasing a souvenir. It's hot in the desert, and they know that souvenir prices are the same everywhere, so they go to the nearest souvenir shop. If there is more than one shop at the same location, the shops split the business evenly. a. If there are two souvenir shops, and they can choose their locations simultaneously, find the pure strategy Nash equilibrium or equilibria, if there are any. b. Now assume that there are three souvenir shops. Find the pure strategy Nash equilibrium or equilibria, if there are any
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a In the case of two souvenir shops lets denote the distance from the beginning of the strip to the ... View the full answer
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