Two street vendors (Vendor Y and Vendor Z) with mobile carts produce the same good which they sell at the same price. Customers are located along a linear boardwalk with six locations (Location A through Location F), with a different number of customers in each location, given by the number beneath each letter, as pictured below: A B C D E F 3 4 6 6 8 8 So, there are 3 customers in location A, 4 in B, 6 in C, 6 in D, 8 in E and 8 in F. The vendors simultaneously choose their location, and cannot move once their choice has been made. Customers
Two street vendors (Vendor Y and Vendor Z) with mobile carts produce the same good which they sell at the same price. Customers are located along a linear boardwalk with six locations (Location A through Location F), with a different number of customers in each location, given by the number beneath each letter, as pictured below:
|
A |
B |
C |
D |
E |
F |
|
3 |
4 |
6 |
6 |
8 |
8 |
So, there are 3 customers in location A, 4 in B, 6 in C, 6 in D, 8 in E and 8 in F. The vendors simultaneously choose their location, and cannot move once their choice has been made. Customers will make a purchase from whichever vendor is closest to them, and equally close customers will be split evenly between Vendor Y and Vendor Z. The vendors CAN locate in the same location (so, both could locate in location A).
How many customers will Vendor Y capture in equilibrium? (Assume that it is possible to capture half a customer, if necessary).
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
