Question
Two firms; Smarmy Storeman and The Smooth Guys , are two fierce competitors sharing the market for consumer electronics in a large city. Both currently
Two firms; Smarmy Storeman and The Smooth Guys, are two fierce competitors sharing the market for consumer electronics in a large city. Both currently have four stores across the metropolitan area. However, instead of being spread out evenly, such that they don't need to compete head-to-head in the same suburbs, they have built all their stores in the same suburbs, very close to one another. Which of the following well-known games is the best analogy for this approach?
A. | A cooperative prisoners' dilemma game. | |
B. | A non-cooperative prisoners' dilemma game. | |
C. | A beach-location game. | |
D. | A 'burn the boats' game. | |
E. | A 'paper-rock-scissors' game. |
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