1. Two competing companies, Rigelbucks and Canisbucks, are deciding in which of three malls (A, B, or C) to move their coffee houses. A market research firm has determined that the number of customers each store gains from or loses to the other per day as a result of the location selected is given by the following payoff matrix.

For instance, if Rigelbucks locates in mall A and Canisbucks locates in mall B, then Rigelbucks will gain 600 customers per day and Canisbucks will lose 600 customers per day. Determine each company's optimal strategy. Is this game strictly determined? If so, what is its value?
2. Rory and Cara each have a coin. If they both show heads, Rory pays $2 to Cara. If they both show tails, Cara pays $2 to Rory. If Rory shows heads and Cara shows tails, Cara pays $3 to Rory. If Rory shows tails and Cara shows heads, then Cara pays $1 to Rory. Determine each person's optimal strategy. Is this game strictly determined? If so, what is the value of the game?

Transcribed Image Text:

Canisbucks -200 -75 600 Rigelbucks B 400 450 300 cL-100 500 150