What is the game theory analysis to this decision? The following applies to Questions 3 to 6:

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What is the game theory analysis to this decision?

The following applies to Questions 3 to 6: UKmart and Frenchmart are rival supermarkets with stores throughout the world. Recently, Frenchmart has opened up a store in country K that is not particularly profitable for UKmart.

Competing with Frenchmart would be costly.

The accountant advises that UKmart should close its store as profits will be negligible with the two present. The marketing director disagrees, saying that if they win here they will take on more profitable countries currently dominated by UKmart. The non-executive director suggests that UKmart should open up in a country where Frenchmart is dominant. The finance director comments that the real problem with this decision is a domain problem, are we looking at one country investment or are we looking at the whole portfolio?

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