Reference oligopoly

Two retail stores in a city have to decide whether to open for 24 hour shopping at Christmas or just keep their regular hours. If both keep regular hours, they will make $0.75m profit . If either one of the firms opens 24 hours, it will make $0.9m; the other firm will only make $0.5m. If both firms open 24 hours, there will be no gain in market share and the extra costs will reduce profits to $0.6m each. i) Put this information into a payoff matrix. [1] ii) What will the outcome be if the game is played once? Explain the process. [2] iii) Does this meet the criteria for a Nash equilibrium? Explain [2]