sincethey are votingsincerelyeach playerwillchoosetheiractionbased on the
1a
theyreceive Hence MrPinkwillvotefor 2 Mrwhitewillvotefor
Black
and
B Mr willvotefor y resulting in a tie sinceit is a tie Mr
Black is able to exercise his poweras chairman and will choose r as a
maximumutility
result
r is the winnerand outcome
b Each player of
the gamewillvotefor
D
d NoThe labels ofthe payoffs can bearbitrary as long asthe
magnitude ofeach label remainthe same
2
Eh 3
a
4
3
2
1
5
4 5
iii iiiiiii
25,25 20,30725,1140,107
30,207
b
Ianwill never play 1 I i strictlydominatedby2
Ian will neverplay5 5 is strictly dominatedby 2
1
µ
In 3
4 5
II
titti
ftp iiiif
I
I
1M
f2
t
Bruce
will notplay2 2 is strictly
by 3
ma will nearly
dominated
dominated
by 3
strictly
is
Bma will neverplays sis
shirt
dominated
by 3
Bruce will never
play I
l is strictlydominated by 1
that Bove only play 3 the most logical thing for player 2 to play
is 3 to maximise its utility Hence Bruce and Ian will both open shops in
Knowing
Region
1
3
Opening
of restaurant locations Each chainhas to choose
maximise
their
customer
base
a region that
will