[Two home-improvement stores (Great Home and Super Home) in a growing urban area are interested in expanding their marke

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answerhappygod
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[Two home-improvement stores (Great Home and Super Home) in a growing urban area are interested in expanding their marke

Post by answerhappygod »

[Two home-improvement stores (Great
Home and Super Home) in a growing urban area are
interested in expanding their market share. Both are interested in
expanding the size of their store and parking lot to accommodate
potential growth in their customer base. Two possible actions for
both the firms are: ‘increase the size of the store and parking
lot’ and ‘do not increase the size of the store and parking
lot’. Payoffs are defined in terms increase in annual profits
in $million. The following table describes the payoffs for both the
firms to alternative actions taken by each of
them.]
Super Home
Increase
Do not increase
Great Home
Increase
Super Home = $1.0 million
Great Home = $1.5 million
Super Home = $0.4 million
Great Home = $3.4 million
Do not increase
Super Home = $3.2 million
Great Home = $0.6 million
Super Home = $2.00 million
Great Home= $2.5 million
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