1. Two grocery stores in a small city are considering ways to update their stores. Each store can leave its store in its current condition, remodel its existing store, or build a new store. The game is shown below. Profits are in thousands of dollars. (Recall row player's, Queen Soopers', payoffs are listed before the comma and column player's, Half Foods', payoffs after.)

a. Are there any dominant strategies for either Queen Soopers or half Foods? Explain.

b. Are there any dominated strategies for either Queen Soopers or half Foods? Explain.

c. solve for any Nash equilibria.

Transcribed Image Text:

Leave store as it is Queen Soopers Remodel existing store Build new store Leave store as it is Remodel existing store 350, 300 300, 175 Half Foods 400, 150 175, 350 450, 450 300, 400 Build new store 150, 300 400, 300 200, 200 Leave store as it is Queen Soopers Remodel existing store Build new store Leave store as it is Remodel existing store 350, 300 300, 175 Half Foods 400, 150 175, 350 450, 450 300, 400 Build new store 150, 300 400, 300 200, 200

Answer rating: 100% (QA)

a If Half Foods leave store as it is then Queen Soopers will build new store as payoff is highest for Queen Soopers in that case If Half Foods remodel ... View the full answer