Question: Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot. (Ask your instructor to fund the jackpot.) Your opponent picks first. What number do you expect her to choose? Why? What number would you then pick? Why are the two numbers so close? How might this example relate to why Home Depot and Lowes, Walgreens and Rite-Aid, McDonald’s and Burger King, Borders and Barnes & Noble, and other major pairs of rivals locate so close to each other in many well-defined geographical markets that are large enough for both firms to be profitable?

Step by Step Solution

★★★★★

3.62 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

As the first player it is optimal to choose 50 The reasoning is that you... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

252-B-E-M-E (1860).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Part 1 Write the Journal Entries On the forms provided on the excel student input file, journalize the following transactions for the month of June for Baxter Company using the following list of...

Q:

Two children are playing a game in which they try to hit a small box on the floor with a marble fired from a spring-loaded gun that is mounted on a table. The target box is horizontal distance D =...

Q:

Some friends are playing a game in which two six-sided dice are rolled (craps, Settlers of Catan, etc.). One of them exclaims, Since the sum of the dice is between 2 and 12, there is a one in eleven...

Q:

A and B plays a game in which As probability of winning is 23 In a series of 8 games what is the probability that A will win (i)exactly 4 games, (ii) at least 4 games, (iii) 6 or more games and (iv)...

Q:

The coordinates of the endpoints of bar (TU) are T(-8,-9) and U(1,9). Point V is on bar (TU) and divides it such that TV:UV is 5:4. What are the coordinates of V ? Write your answers as integers or...

Q:

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

Q:

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

Q:

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

Q:

11. advanced analysis Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and...

Q:

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

Q:

Suppose you are playing a game in which you and one other person each picks a number between 1 and 100, with the person closest to some randomly selected number between 1 and 100 winning the jackpot....

Q:

The constant-growth DCF formula is sometimes written as where BVPS is book equity value per share, b is the plowback ratio, and ROE is the ratio of earnings per share to BVPS. Use this equation to...

Q:

Read The Enlightenment in Europe and the Americas. After reading the introductory section on the Enlightenment, choose one scene from Tartuffe and analyze how it reflects Enlightenment ideals. In...

Q:

what was the phase out income for student loan interest in 2 0 2 3

Q:

What are two major victories achieved by the Uruguay Round of GATT conferences?

Q:

How does an import quota restrict trade?

Q:

Edmonton Pools manufactures swimming pool equipment. Edmonton estimates total manufacturing overhead costs next year to be $1,400,000. Edmonton also estimates it will use 50,000 direct labor hours...

Q:

What are the two different classifications of tariff? What is each designed to do?

Q:

The credit manager of Montour Fuel has gathered the following information about the companys accounts receivable and credit losses during the current year: Net credit sales for the year . . . . . . ....

Q:

David Platt points out that the power of the gospel takes off when the spread of the gospel is not left only to trained ministers or professionals but when the entire body of Christ is awakened to...

Q:

Given the inelasticity of cigarette demand, discuss an excise tax on cigarettes in terms of efficiency loss and tax incidence.

Q:

How do the top two categories of federal employment differ from the top two categories of local and state employment?

Q:

For state and local governments, what are the three most important sources of revenue and types of expenditure?

Q:

The table of ordered pairs (x, y) gives an exponential function. Write an equation for the function. X - 1 0 18 2 108

Q:

When the bond's coupon rate is less than the bondholder's required return, the bond's intrinsic value will be less than its par value, and the bond win trade at. For example, assume Jackson wants to...

Q:

can you explain how to get the answer without excel and a financial calculator since this is a written exam 3. (25 pts) Superserv Inc. intends to acquire new equipment for $10 million and has an...