Question

Lacy's department store is thinking of having a major sale in the month of February, but does not know if its competitor store Hillstrom's is also planning one. From historical data, Lacy's knows the following:

• If Lacy's offers a sale and Hillstrom's does not, Lacy's sales numbers go up by 30%.
• If both stores offer sales simultaneously, Lacy's sales numbers go up by only 5%.
• On the other hand, if Lacy's does not offer a sale and Hillstrom's does, Lacy's sales decrease by 5% while Hillstrom's benefits.
• If neither of the stores offers a sale, Lacy's experiences no change in sales.

1. SET UP THE EQUATION FOR HOW LACY AND COMPETITORS CAN FIND THEIR OPTIMAL STRATEGIES. DON'T SOLVE THE PROBLEM, BUT RATHER SET UP THE EQUATION FOR HOW TO SUCCESSFULLY FIND THE OPTIMAL STRATEGIES.  DO NOT SET UP THE PAY OFF MATRIX.

Answer 1

Solution! lay 30 % +5% ottensade. ase diffon