1 sun resortssun resorts has a hotel on a caribbean island

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1. Sun Resorts

Sun Resorts has a hotel on a Caribbean Island. It recently spent money to lobby the government to build a better airport and expand air service. Why did they do this? Do you think that Sun Resorts cares about how many airlines will serve the island? Explain.

2. The following game matrix shows the strategies and payoffs for Billy Corrigan and Eddie Vedder as they consider their concert schedule for Memorial Day.  Each performer is headlining a national summer tour.  The payoffs are in thousands of dollars.

 

           Eddie Vedder's Strategy

Concert at Target Center

Concert in Chicago

 Billy Corrigan's Strategy

Concert at Xcel Center

Billy gets $10

Billy gets $22

Eddie gets $19

Eddie gets $18

Concert in Chicago

 

Billy gets $28

Billy gets $10

Eddie gets $34

Eddie gets $20

a. What is the dominant strategy, if any, for Billy Corrigan?

b. What is the dominant strategy, if any, for Eddie Vedder?

c. If there is a Nash equilibrium in the game, describe the Nash equilibrium or Nash equilibria.

Reference no: EM13373361

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