This lecture provides a general introduction to the course, explains the extensive form representation of games and introduces you to Comlabgames , software for designing, playing and analyzing experimental games.
There is a Wild Oats supermarket and a Coop organic grocery in Cleveland OH selling organic food, but only a Coop in Buffalo NY.
There is greater demand for organic food in Cleveland than in Buffalo, mainly attributable to differences in population.
Whole Foods is contemplating entry into one of those markets as it expands across the Midwest into the Northeast.
If Whole Foods builds a new store in either location, one or both rivals might respond by cutting prices and offering the similar product lines, or they might passively accommodate Whole Foods’ high end entry.