dolution

1. Find optimal strategies for each player and the value of the two-person zero-sum game in Table 52.

2. Airway (a Midwestern department store chain) and Corvett (an Eastern department store chain) are determining whether to expand their geographical bases. The only viable manner by which expansion might be carried out is for a chain to open stores in the other’s area. If neither chain expands, then Airway’s profits will be $3 million and Corvett’s will be $2 million. If Airway expands and Corvett does not, then Airway’s profits will be $5 million, and Corvett will lose $2 million. If Airway does not expand and Corvett does, Airway will lose $1 million, and Corvett will earn $4 million. Finally, if both chains expand, Airway will earn $1 million and Corvett will earn $500,000 in profits. Determine the equilibrium points, if any, for this game.