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Wal-Mart Stores, Inc., is an enormously successful chain of discount retail stores started by Sam Walton in 1993. WatHart's expansion strategy has been to charge

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Wal-Mart Stores, Inc., is an enormously successful chain of discount retail stores started by Sam Walton in 1993. WatHart's expansion strategy has been to charge less than ordinary department stores and small retail stores by relying on size and high-inventory turnover. 3am Walton began opening his stores in small Southwestem towns. By the mid191'0s, other discount chains realized that 1il'iulaIluliart has a protable strategy. Since there are lots of small towns in the United States, a race ensued to see who could be the rst to get to each town. Therefore, Wei-Mart found itself in a preemption game of the sort illustrated by the payoff matrix to the right. The game's Nash equilibrium lequilibria] is {are} for O A. WalMart to enter and Company X to not enter and for WalMart to not enter and Company X to enter. 0 B. Both WatMart and Company X to enter. 0 C. WalMart to enter and Company X to not enter and for both WEI-Marl and Company X to enter. 0 D. Company X to enter and Well'ulart to not enter. 0 E. WalMart to enter and Company X to not enter. Now suppose Wal-Mart moves first. What will be the Nash equilibrium? The game's Nash equilibrium (equilibria) is (are) for O A. Company X to enter and Wal-Mart to not enter. O B. Wal-Mart to enter and Company X to not enter. O C. Wal-Mart to enter and Company X to not enter and for Wal-Mart to not enter and Company X to enter. O D. Wal-Mart to enter and Company X to not enter and for both Wal-Mart and Company X to enter. O E. Both Wal-Mart and Company X to enter

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