Ice-cream vendors and locate simultaneously on a beach identified with the interval ; at every point there is a buyer who buys from the nearest vendor (ties split evenly). Each vendor maximizes his own expected market share. The vendors will locate at
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Ice-cream vendors A and B locate simultaneously on a beach identified with the interval [0,1]; at every point there is a buyer who buys from the nearest vendor (ties split evenly). Each vendor maximizes his own expected market share. The vendors will locate at (A) 0 and 1 (B) 1/4 and 3/4 (C) 1/2 and 1/2 (D) 1/3 and 2/3
Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.
This question is on Applied games: public goods, voting and location, part of Game theory and strategic behaviour in Game Theory.
Strategic models of provision, voting, bargaining and where to locate.
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Question from the DSE 2010 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.