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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

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.

Dealership B

Dealership A Cash Rebate Free Options 0% Loan

Cash Rebate 2,?2 2,?2 1,?1

Free Options ?3,3 3,?3 ?1,1

0% Loan 3,?3 ?2,2 0,0

Identify the pure strategy for this two?person zero?sum game.

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