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joytheqt305
joytheqt305
20.03.2020 • 
Business

Consider a location game like the one discussed in this chapter. Suppose that instead of the nine regions located in a straight line, the nine regions form a box with three rows and three columns. Two vendors simultaneously and independently select on which of the nine regions to locate. Suppose that there are two consumers in each region; each consumer will walk to the nearest vendor and purchase a soda, generating a $1.00 profit for the vendor. Consumers cannot walk diagonally. For example, to get from the top-left region to the middle region, a consumer has to walk through either the top-center region or the middle-left region. (This means that the middle region is the same distance from top-left as top-right is from top-left.) As- sume that if some consumers are the same distance from the two vendors, then these consumers are split equally between the vendors. Determine the set of rationalizable strategies for the vendors.

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