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Topic on game theory Adam and Lucy are two Hainan Chicken Rice sellers in the same food court. Every week, each of them will submit
Topic on game theory
Adam and Lucy are two Hainan Chicken Rice sellers in the same food court. Every week, each of them will submit a price to the food court committee to fix the weekly set meal price. Initially they agree to set at a same high price for each set meal but one might submit a lower price to attract more customers in that week. The payoff matrix is as follows: Unit: (\$ Thousands) Assume both players use a grim strategy. Is it worthwhile for one of them to defect once, given the weekly total rate of return r=0.2 ? ExplainStep by Step Solution
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