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Build a game-theoretic model of competition between the two states using the following parameters: Kansas considers luring AMC with a one-time incentive in the amount

Build a game-theoretic model of competition between the two states using the following parameters:

Kansas considers luring AMC with a one-time incentive in the amount of $13 million.

Missouri is considering luring Applebee's with a one-time payment of $20 million.

The estimated state tax revenue stream from either company is $7 million per year in perpetuity, discounted at 5% annually.

how is below matrix filled. As you do that, do not forget to convert the perpetual stream of payments into a lump-sum present value, to be able to compare it to one-time incentive value.

image text in transcribed
Missouri Provide incentives to Provide Applebee's, no incentives Applebee's moves to MO Provide incentives to Kansas AMC; AMC moves to KS Provide no incentives

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