Casey's General Store Is Considering Placing a Store in Hamilton

question 33

Essay

Casey's General Store is considering placing a store in Hamilton, Missouri. If they place the store in Hamilton and no other convenience store enters the Hamilton market, they'll earn profits of $100,000 per year. If competitors do enter, Casey's profits as well as the competitor's profits will be reduced to $0 per year. If a competitor enters the Hamilton market and Casey's does not, the competitor's profits will be $100,000 per year.
Does either player have a dominant strategy? Does the game have any Nash equilibria? What is the maximin strategy of each player in the game?

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Definitions:

Service-Sponsored Retail Franchise System

A franchise model where the franchisor provides a range of support services to the franchisee, typically in the retail sector.

Employment Services

Organizations or agencies that help individuals find jobs or careers, and may also assist employers in finding qualified employees.

Marketing

The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Density

In a general context, it refers to the measure of mass per unit volume; in marketing, it may relate to the saturation of advertisements or products in a market area.