Problem 2. Locating your stand A iirmis choice of location is of great importance as proximity to its customers and competitors determines profitability. Bruce and Ian {E and I} work [or the same soft drink company and their job is to sell soda at a popular beach. They work at the same beach and by company policy. must charge the same price. The company giyes eaeh salesperson a commission of $1 per can sold. Due to requirements of refrigeration. each salesperson must work from a stationary booth on the beach. The only decision the salesperson has to make is the location of the booth on the beach at the beginning of the day. Bruce and Ian select the locations of their booths independently and simultaneously. The beach is divided into 5 regions of equal size. labeled 1. 2. 3. 4. 5. from leftmost [region 1} to center {region It] to rightmost [region 5]. Booths can be located in any one oi these live regions. It is also possible [or both sales- people to locate in the same region. (in any given day. 1D people in each region will wish to purchase one soda each. The customers will walk to the nearest booth to make their purchase. II the customers of a given region are indiiierent between the two booths. they go to each of them with probability onehaii'. Bruce and Ian seek to maximize their profits. [a] 'Write down the normal form of the game. [b] Use Iterated Elimination of E-ltrictly Dominated Strategies to nd the outcome of the game. {e} ("fan you think of other applications of this model