Suppose that there are only two vehicle dealerships (A and B) in a small city. Each dealership is considering three strategies that are designed to take sales of new vehicles from the other dealership over a period of four months. The strategies, assumed to be the same for both dealerships, are:

Strategy 1: Offer a cash rebate on a new vehicle.

Strategy 2: Offer free optional equipment on a new vehicle.

Strategy 3: Offer a 0% loan on a new vehicle.The payoff table (in number of new vehicle sales gained per week by Dealership A (or lost by Dealership B) is shown below

DEALERSHIP B DEALERSHIP A Cash Rebate, b. Free Options, by 0% Loans, b, Cash Rebate, a, 3 2 Free Options, az 5 0% Loans, an -1 2