You are planning on opening a new clothing boutique in Luxembourg specializing in maternity and baby clothes. There are two locations you are considering: in the center of downtown, or a little bit outside of the center. The downtown location initially looks more attractive as it would attract more pedestrian traffic. However, you have learned that JoJo Maman Bb (a British retailer, offering similar clothing) is also planning on opening a store in Luxembourg and is also eyeing the same two general locations. If you both open shops downtown you will get 550 customers per week. If you open on downtown and JoJo does not, you will get 700 customers per week. If you both open outside the center

you will get 400 customers per week. If you open outside the center and JoJo does not, you will get 500 customers per week.

JoJo, being a more established brand name, has slightly higher estimates for the number of customers they will see. If both shops are on downtown, JoJo will get 800 customers per week. If both shops are outside the center, they will get 600 customers per week. If JoJo is downtown and you are not, they will get 1000 customers per week. Finally, if JoJo is outside the center and you are not, they will get 700 customers per week.

Suppose that everyone's goal is to maximize the number of customers they see each week, and that both companies will have to start the permitting process to open a store before they know what their rival is doing. What is/are the Nash equilibrium/equilibria in this game?

(a) Both shops open downtown

(b) Both shops open outside of the center

(c) You open downtown, and JoJo opens outside of the center

(d) You open outside of the center, and JoJo opens downtown

(e) There are two Nash Equilibria in the game, each involving one player opening downtown and the other player opening outside of the center