Question
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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