I have been given the following table Can you help with the
I have been given the following table. Can you help with the 1st round of eliminations, the 2nd round of eliminations, and then the final selection for both companies?
| Pizza Hut | ||||
| $1 mill | $2 mill | $3 mill | ||
| $1 mill | $60/$55 | $70/$60 | $20/$65 | |
| Papa John\'s | $2 mill | $80/$40 | $40/$55 | $60/$50 |
| $3 mill | $85/$35 | $67/$45 | $65/$55 |
Solution
Papa Jhon selects $1mil
Payoff for Pizza Hut if $1mill is selected - $5
Payoff for Pizza Hut if $2mill is selected - $10
Payoff for Pizza Hut if $3mill is selected - ($45)
Papa Jhon selects $2mil
Payoff for Pizza Hut if $1mill is selected - $40
Payoff for Pizza Hut if $2mill is selected - ($15)
Payoff for Pizza Hut if $3mill is selected - $10
Papa Jhon selects $3mil
Payoff for Pizza Hut if $1mill is selected - $50
Payoff for Pizza Hut if $2mill is selected - $22
Payoff for Pizza Hut if $3mill is selected - $10
In the first round, Papa Jhons would eliminate $3mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($50)
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Pizza Hut selects $1mil
Payoff for Papa Jhon if $1mill is selected - $15
Payoff for Papa Jhon if $2mill is selected - $40
Payoff for Papa Jhon if $3mill is selected - $50
Pizza Hut selects $2mil
Payoff for Papa Jhon if $1mill is selected - $30
Payoff for Papa Jhon if $2mill is selected - ($15)
Payoff for Papa Jhon if $3mill is selected - $22
Pizza Hut selects $3mil
Payoff for Papa Jhon if $1mill is selected - ($45)
Payoff for Papa Jhon if $2mill is selected - $10
Payoff for Papa Jhonif $3mill is selected - $10
In the first round, Pizza Hut would eliminate $1mill because that is the case when Papa Jhon gets the maximum payoff of all the possible cases ($50)
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2nd Round
Now that Papa Jhon has eliminated $3 mill, it will now eliminate $2 mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($40)
Also, as Pizza Hut has eliminated $1 mill, it will now eliminate $2 mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($30)
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Final Selection
Papa Jhon will select $1 mill
Pizza Hut will select $3 mill

