Dale and Terry Are Racing Automobiles Around a Track

question 10

Essay

Dale and Terry are racing automobiles around a track. Currently, Terry is in the lead. However, Dale has a faster car and is just behind Terry. The racers' strategies and pay-offs are presented in the table below. The goal of the drivers is to do as well as possible in the race. There are a total of 43 cars on the track.
Does either player have a dominant strategy? Does the game have a Nash equilibrium? What is the maximin strategy of each player in the game?

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Definitions:

Retained Earnings

The portion of a business's profits not distributed to shareholders but reinvested in the business or held for future use.

Surplus Cash

Excess funds that a company retains over its necessary working capital and capital expenditure requirements, often available for investment or distribution.

Dividends

A portion of a company's earnings distributed to shareholders, often in the form of cash or additional stock.

Internal Revenue Code

The comprehensive set of tax laws in the United States, governed by the Internal Revenue Service (IRS), that dictates federal tax obligations.