Marketing executives for two competing companies are trying to decide whether to advertise in Atlanta, Boston, or Denver, given that each company can afford to target only one city at a time. General Items Company has a leading market share and has found that it will earn an additional profit of $6000, $4000, or $2000 per week if they advertise in Atlanta, Boston, or Denver, respectively. Original Imitators, Inc., has a smaller portion of the market, but its executives can cut General Items' additional profit in half and gain that profit themselves if they run competing ads in the same city as General Items. If they run ads in a different city, their ads seem to have no impact. Complete parts (a) and (b) below. (a) Set up the profit matrix for this game such that General Items Company is the row player and Original Imitators, Inc. is the column player. List the cities alphabetically from left to right and top to bottom. (b) Find the optimum strategy for each company and the value of the game. The optimum strategy for General Items Company is (Simplify your answers.) D. The optimum strategy for Original Imitators, Inc. is (Simplify your answers.) The value of the game is s (Round to the nearest cent as needed.) D.
Marketing executives for two competing companies are trying to decide whether to advertise in Atlanta, Boston, or Denver, given that each company can afford to target only one city at a time. General Items Company has a leading market share and has found that it will earn an additional profit of $6000, $4000, or $2000 per week if they advertise in Atlanta, Boston, or Denver, respectively. Original Imitators, Inc., has a smaller portion of the market, but its executives can cut General Items' additional profit in half and gain that profit themselves if they run competing ads in the same city as General Items. If they run ads in a different city, their ads seem to have no impact. Complete parts (a) and (b) below. (a) Set up the profit matrix for this game such that General Items Company is the row player and Original Imitators, Inc. is the column player. List the cities alphabetically from left to right and top to bottom. (b) Find the optimum strategy for each company and the value of the game. The optimum strategy for General Items Company is (Simplify your answers.) D. The optimum strategy for Original Imitators, Inc. is (Simplify your answers.) The value of the game is s (Round to the nearest cent as needed.) D.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Marketing executives for two competing companies are trying to decide whether to advertise in Atlanta, Boston, or Denver, given
that each company can afford to target only one city at a time. General Items Company has a leading market share and has
found that it will earn an additional profit of $6000, $4000, or $2000 per week if they advertise in Atlanta, Boston, or Denver,
respectively. Original Imitators, Inc., has a smaller portion of the market, but its executives can cut General Items' additional profit
in half and gain that profit themselves if they run competing ads in the same city as General Items. If they run ads in a
different city, their ads seem to have no impact. Complete parts (a) and (b) below.
(a) Set up the profit matrix for this game such that General Items Company is the row player and Original Imitators, Inc. is the
column player. List the cities alphabetically from left to right and top to bottom.
(b) Find the optimum strategy for each company and the value of the game.
The optimum strategy for General Items Company is (D).
(Simplify your answers.)
The optimum strategy for Original Imitators, Inc. is (D).
(Simplify your answers.)
The value of the game is $.
(Round to the nearest cent as needed.)
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