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Consider sunbathers so distributed on the four sectors of a beach (in hundreds): sector 1 2 3 4 sunbathers 25 25 25 25 Two lemonade
Consider sunbathers so distributed on the four sectors of a beach (in hundreds): sector 1 2 3 4 sunbathers 25 25 25 25 Two lemonade vendors must choose in the morning to locate their stands, xed for the day, in just one sector. Every sunbather gets one lemonade from the closest stand; if stands are equidistant for sunbathers in a sector, 60% go to stand 1 and 40% to stand 2. Each vendor seeks the most customers. In matrix form, this game is a. Can a dominated strategy be played in a mixed Nash equilibrium? justify your answer. b. Compute the mixed Nash equilibrium of this game. c. What is the expected number of customers that vendor 1 gets
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