Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2015 › Q25
2 marks, −0.666666666666667Game Theory › Game theory and strategic behaviour › Applied games: public goods, voting and locationModerateabout 3 min

DSE 2015 Question 25: Game theory and strategic behaviour

Buyers of ice-cream are uniformly distributed on [0,1][0,1][0,1]. Two sellers simultaneously choose locations to maximize market share (each buyer goes to the nearer seller). In equilibrium,

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

Buyers of ice-cream are uniformly distributed on [0,1]. Two sellers simultaneously choose locations to maximize market share (each buyer goes to the nearer seller). In equilibrium, (A) both will locate at 1/2 (B) one will locate at 1/4 and the other at 3/4 (C) one will locate at 0 and the other at 1 (D) one will locate at 1/3 and the other at 2/3

Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.

What this question tests

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.

TestStop has 7 past-paper questions on this subtopic.

Practise Game theory and strategic behaviourMore on Applied games: public goods, voting and location

Similar questions from other papers

  • GATE 2026 · Q31Two players use the following procedure to divide a perfectly homogeneous and continuously divisible cake. First, Player 1 divides the cake into two pieces and then…
  • IIT JAM 2026 · Q26Consider a simultaneous game with players X (strategies Top, Bottom) and Y (strategies Left, Right). Payoffs (i,j) give X 's and Y 's payoffs: Top-Left (1,2), Top-Right…
  • GATE 2025 · Q57There are two firms in an industry producing a homogeneous product. The market demand function is given by P = 1 - (q₁+q₂), where q₁ and q₂ are the output levels of…
  • IIT JAM 2025 · Q48The sum of the payoffs to the players in the Nash equilibrium of the following simultaneous game is. Player X chooses C or NC and Player Y chooses C or NC. Payoffs (X…
  • UGC-NET 2025 · Q12Match List-I with List II A. Playing each strategy with probability B. Maximum payoff given the strategy of the other C. Long-run behavior D. Period of punishment is…

Question from the DSE 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.