Two street vendors, A and B, are located near a major tourist attraction. The proportion of customers captured by each vendor depends on the merchandise sold by that vendor and by her competitor. A customer gained by one is lost to the other. Each vendor can stock one of the following: clothing, ice cream, or souvenirs. The possible strategies and proportion of customers captured are as follows. If both shops sell souvenirs, A captures 25% of the customers. If both shops sell clothing, A and B split the customers evenly. If both shops sell ice cream, A and B split the customers evenly. If B sells ice cream and A sells souvenirs, A captures 10%. If B sells clothing and A sells ice cream, A captures 90%. If B sells souvenirs and A sells clothing, A captures 10%. If A sells clothing and B sells ice cream, A captures 100%. If A sells souvenirs and B sells clothing, A captures 75%. If A sells ice cream and B sells souvenirs, A captures 40%. Model the decision of each vendor as two-person zero-sum game and find a solution by elimination of dominated strategies
Please solve very soon completely
Two street vendors, A and B, are located near a major tourist attraction. The proportion of customers captured by each vendor depends on the merchandise sold by that vendor and by her competitor. A customer gained by one is lost to the other. Each vendor can stock one of the following: clothing, ice cream, or souvenirs. The possible strategies and proportion of customers captured are as follows. If both shops sell souvenirs, A captures 25% of the customers. If both shops sell clothing, A and B split the customers evenly. If both shops sell ice cream, A and B split the customers evenly. If B sells ice cream and A sells souvenirs, A captures 10%. If B sells clothing and A sells ice cream, A captures 90%. If B sells souvenirs and A sells clothing, A captures 10%. If A sells clothing and B sells ice cream, A captures 100%. If A sells souvenirs and B sells clothing, A captures 75%. If A sells ice cream and B sells souvenirs, A captures 40%. Model the decision of each vendor as two-person zero-sum game and find a solution by elimination of dominated strategies
Step by step
Solved in 2 steps with 4 images
