Analyze the given situation (the scenario) from both vendor’s perspective, and present either one solution or compare several possible solutions in your written answer. The logic of this game is quite subtle. Both players, calculating their best actions, must simultaneously conjecture what their rival is going to decide to do. The puzzles that the location game might resolve in business life include the following: Why do gas stations often cluster together?Why do gas stations often cluster together? Why do different airlines flying a given route schedule simultaneous departures? Why do New York City street peddlers of watches and radios cluster on the same blocks? Why do competing television networks target their programs at bland, middle-of-theroad tastes?
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