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Question: Two brothers, Curly and Shemp, inherit a car worth 8000 dollars. Since only one of them can actually have the car, they agree they will present sealed bids to buy the car from the other brother. The brother that puts in the highest sealed bid gets the car. They must bid in 1000 dollar units. If the bids happen to be the same, then they flip a coin to determine ownership and no money changes hands. Curly can bid only up to 5000 while Shemp can bid up to 8000 Find the payoff matrix with Curly as the row player and the payoffs the expected net gain (since the car is worth 8000). Find v-, v+ and use dominance to solve the game.
What are your views regarding The Cheesecake Factory's overall market potential?
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