1.For the game, identify the saddle point and determine the corresponding optimal strategy for each player

2 1 5

63 6

4 1 2

The saddle point is the______in row_______and column_____________.

2.For the game, identify the saddle point and determine the corresponding optimal strategy for each player.

26 7 4 2

2317 18 27

14 16 19 9

The saddle point is the_______in row_______and column________.

The optimal strategy is forRto always choose row____________and forCto always choose column____________.

3.Determine the optimal strategy for the situation by representing it as a game and finding the saddle point. State your final answer in the terms of the original question.

In an ongoing price war between Burger Haven (locally owned) and MacArches (a chain), both restaurant managers plan to change the price of a hamburger by 10. If they both raise their prices, there will be no change in their market shares, but if they both lower their prices, the chain's national advertising will ensure that MacArches gains7%of the market. Again because of advertising, if Burger Haven lowers their price and MacArches raises their price, Burger Haven will gain only3%of the market, but if Burger Haven raises their price and MacArches lowers their price, MacArches will gain9%of the market. Use this information to decide what the managers should do.

MacArches

LR

L____________% ____________%

Burger Haven

R____________% ____________%

What doesLrepresent?

• Lrepresents lowering the price by 10.
• Lrepresents raising the price by 10.

What doesRrepresent?

• Rrepresents lowering the price by 10.
• Rrepresents raising the price by 10.

The saddle point is the____________in row__________and column _____________.

What should the managers do?

• Both restaurants should lower the price.
• MacArches should lower its prices, while Burger Haven raises its prices.
• Both restaurants should raise the price.
• Burger Haven should lower its prices, while MacArches raises its prices.