Consider the Following Payoff Matrix Facing Harry and Sally When

question 34

Multiple Choice

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. $\begin{array}{|l|l|l|l|}\hline &&\text { Harry }\\\hline && \text { Starbucks } & \text { Dunkin Donuts } \\\hline \text { Sally }&\text { Starbucks } & \text { H: } 1, \mathrm{~S}: 1 & \text { H: } 0, \mathrm{~S}: 0 \\\hline &\text { Dunkin Donuts } &\mathrm{H}: 0, \mathrm{~S}: 0 & \mathrm{H}: 1, \mathrm{~S}: 1 \\\hline\end{array}$ If Harry and Sally go to the coffee shop every day, what is Harry's best strategy?

• A)Harry has no best strategy.
• B)Choose one shop to go to and keep going to it.
• C)Randomly choose between the two shops and hope Sally will end up there too.
• D)Stay at home.

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Definitions:

Quantity Discount

A reduction in price based on the amount of product purchased, incentivizing larger orders.

Shelf Positioning

The strategic placement of products within a store or on a website to maximize visibility and sales potential, often based on consumer behavior patterns.

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A type of cosmetic product designed specifically for the care, treatment, styling, or grooming of hair.

Personal Space

An area two to four feet from a person; it is the closest zone a stranger or business acquaintance is normally allowed to enter.