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(This is a game theory question related to oligopoly) Two firms are each considering building a new apartment building in the same neighborhood. If one
(This is a game theory question related to oligopoly) Two firms are each considering building a new apartment building in the same neighborhood. If one building is built, it is likely to be successful. If both buildings are built, it is likely to oversaturate the market and neither building is likely to attract tenants. The estimated profits are: Each firm must commit to developing their buildings at the same time, and neither is allowed to communicate to the other. Explain what the optimal strategy would be. (This is a game theory question related to oligopoly) Two firms are each considering building a new apartment building in the same neighborhood. If one building is built, it is likely to be successful. If both buildings are built, it is likely to oversaturate the market and neither building is likely to attract tenants. The estimated profits are: Each firm must commit to developing their buildings at the same time, and neither is allowed to communicate to the other. Explain what the optimal strategy would be
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