Alex and Avery are two small business owners. Alex currently runs an architecture firm, while Avery runs a home renovation company. Avery is considering expanding to begin offering architecture services also, and thus would be directly competing with Alex. In making this decision, Avery realizes that they have three options. They could: not enter (hiring no architects), enter in a small way by hiring one architect, or enter in a large way by opening an entirely new office with 5 architects.

Alex has various response options, which are summarized, along with the payoffs for each case below: