Consider a location game with nine regions like the one discussed in this chapter. But instead of having the customers distributed uniformly across the nine regions, suppose that region 1 has a different number of customers than the other regions. Specifically, suppose that regions 2 though 9 each has ten customers, whereas region 1 has x customers. For what values of x does the strategy of locating in region 2 dominate locating in region 1?
Consider a location game with nine regions like the one discussed in this chapter. But instead of having the customers distributed uniformly across the nine regions, suppose that region 1 has a different number of customers than the other regions. Specifically, suppose that regions 2 though 9 each has ten customers, whereas region 1 has x customers. For what values of x does the strategy of locating in region 2 dominate locating in region 1?
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.1P
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Consider a location game with nine regions like the one discussed in this chapter. But instead of having the customers distributed uniformly across the nine regions, suppose that region 1 has a different number of customers than the other regions. Specifically, suppose that regions 2 though 9 each has ten customers, whereas region 1 has x customers. For what values of x does the strategy of locating in region 2 dominate locating in region 1?
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