What is the deadline for this, please?
The key is to only care about what shop #1 is going to get. If they both go to the same town, they each get 50%. If #1 goes to one town and #2 goes to another, #1 gets all of that town, and half of the third town.
If #1 goes to Tahoe, #2 can go to Tahoe and #1 gets 50%. If they go to Incline, #1 gets all 34 from Tahoe and half of the 50 from South. 34+(50/2)=59.Similarly, if #2 goes to South, #1 gets 34+(16/2)=42.
#1 goes to Incline, #2 goes to Tahoe. 16+(50/2)=41Both go to Incline, each get 50.#2 goes to South, #1 gets 16+(34/2)=33
#1 goes to South, #2 to Tahoe. #1 gets 50+(16/2)=58.#2 goes to Incline. #1 gets 50+(34/2)=67Both go to South, each gets 50.
Now, both stores know all the facts. They can both read that same chart.
#1 is going to read each column (store #2's choices) and pick the best one for #1. The highest number in each column is for store #1 to choose South Lake Tahoe. 58 is the best choice if #2 goes to Tahoe, 67 is the best if #2 goes to Incline, and 50 is the best if #2 goes to South.
Like I said, #2 can see these numbers as well. They see that their choices are going to be to choose store #1 to get 58%, 67%, or 50% of the business. Their best option is to only let #1 get 50% of the business, so they are going to choose South like store #1 did.Both stores will open up in South Lake Tahoe and split the business evenly.
Thank you very much
Making Inferences about Population Parameters