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1. James and Greg each (separately) want to open a restaurant in Atlanta. They both know that Atlanta can support one, but not both. If one restaurant opens the owner will get 100 (and the other 0). If both open, both owners will get -40. If neither opens, both get 0.
a. Show this as a simultaneous move game, and solve for the equilibrium (or equilibria).
b. Show this as a sequential move game (with James moving first), and solve for the equilibrium. 2. Having successfully opened his Restaurant, James decides that the format will be a buffet and he needs to set a pricing strategy. The marginal cost for serving a customer is estimated to be $3.00. There are two types of customers, students and faculty. The estimated own price elasticity of demand for students -2, while for faculty it is -1.5. Based on this information, recommend a pricing strategy for James (including how it might be implemented).
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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