Two Diners,that Are Located Close to Each Other,compete Aggressively for Customers.One

question 26

Essay

Two diners,that are located close to each other,compete aggressively for customers.One of their main strategies is the 'daily special' that they use to draw customers.The following payoff matrix shows how many customers they attract per day if their daily special is either beef stew [B],pot roast [P],or salmon pie [S].
What daily special will be chosen by Diner A and Diner B in equilibrium if they agree not to benefit at each other's expense??

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Definitions:

Encode

The process of converting information into a particular form, often for communication or storage purposes.

Communication Process

The sequence of steps through which information is transmitted and received, involving a sender, message, medium, receiver, and feedback.

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A dominant company in the personal care industry, known for producing and marketing a wide range of personal hygiene and beauty products.

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The process by which a receiver interprets and understands a message sent by a communicator.