Remember that you need only to specify the second vendors


Consider the location game (in Chapter 8) with nine possible regions at which vendors may locate. Suppose that, rather than the players moving simultaneously and independently, they move sequentially. First, vendor 1 selects a location. Then, after observing the decision of vendor 1, vendor 2 chooses where to locate. Use backward induction to solve this game (and identify the subgame perfect Nash equilibrium). Remember that you need only to specify the second vendor's sequentially optimal strategy (his best move conditional on every different action of vendor 1).

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Remember that you need only to specify the second vendors
Reference No:- TGS02872003

Expected delivery within 24 Hours