Essay
Suppose that there are only two vehicle dealerships (A and B)in a small city.Each dealership is considering three strategies that are designed to take sales of new vehicles from the other dealership over a period of four months.The strategies,assumed to be the same for both dealerships,are:
Strategy 1: Offer a cash rebate on a new vehicle.
Strategy 2: Offer free optional equipment on a new vehicle.
Strategy 3: Offer a 0% loan on a new vehicle.
The payoff table (in number of new vehicle sales gained per week by Dealership A (or lost by Dealership B)is shown below.
Identify the pure strategy for this two-person zero-sum game.What is the value of the game?
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