Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Management Posted 29 Oct 2017 My Price 7.00

growing city of Logantown

Two banks (Franklin and Lincoln) compete for customers in the growing city of Logantown. Both banks are considering opening a branch office in one of three new neighborhoods: Hillsboro, Fremont, or Oakdale. The strategies, assumed to be the same for both banks, are:

Strategy1: Open a branch office in the Hillsboro neighborhood.

Strategy 2: Open a branch office in the Fremont neighborhood.

Strategy 3: Open a branch office in the Oakdale neighborhood.

Values in the payoff table below indicate the gain (or loss) of customers (in thousands) for Franklin Bank based on the strategies selected by the two banks.

                                       Lincoln Bank

Franklin Bank           Hillsboro                   Fremont                              Oakdale

Hillsboro                    20,20                       35,25                                     35,20

Fremont                     30,25                        15,15                                     30,20

Oakdale                     20,25                        20,25                                     10,10

Is there a pure strategy for this game? If so, what is it? If not, identify the potential solutions (neighborhood in which each bank should locate a new branch office).

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Oct 2017 05:10 PM My Price 7.00

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