A small town on a major highway has only two gas stations: station R, a major brand

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A small town on a major highway has only two gas stations: station R, a major brand station, and station C, an independent. A market research firm provided the following payoff matrix, where each entry indicates the percentage of customers who go to station R for the indicated prices per gallon of unleaded gasoline. Find saddle values and optimal strategies for each company.

Station R $1.40 $1.45 Station C $1.35 $1.40 50% 70% 40% 50%

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Finite Mathematics For Business Economics Life Sciences And Social Sciences

ISBN: 9780134862620

14th Edition

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

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