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Problem 1: [20 pts] Consider the following version of the location game discussed in lecture. Suppose instead that the nine regions are located on a
Problem 1: [20 pts] Consider the following version of the location game discussed in lecture. Suppose instead that the nine regions are located on a circle as follows: Two vendors simultaneously and independently select on which of the nine regions to locate. Suppose that there are 60 consumers in each region; each consumer will walk to the nearest vendor and purchase a soda, generating 1 dollar of prot for the vendor. If the vendors are equidistant from a region, then the vendors split those consumers in half. Part a: [10 pts] Determine the set of rationalizable strategies for each of the vendors. Part I): [10 pts] Find the set of all Nash equilibria of the above location game. Part 0: [Extra Credit + I 0] Now suppose that there are three vendors. Find all of the Nash equilibria of this game
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