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Question: larry and lois each run their own lawn service company...

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Larry and Lois each run their own lawn service company and are each considering buying one hour of advertising on a local radio station either during the day or during the evening. The station has 4,000 listeners during the day and 9,000 listeners in the evening. Assuming that if Larry and Lois advertise during the same time period then they will each attract 15% of the radio stations listeners from that time period as new customers and that if they advertise at different times then they each will each attract 25% of the listeners from their respective time periods as new customers. The completed game matrix or this game is given below. Larry Day (600,600) Evening Day (1000,2250) Lois Evening(2250,1000)1350,1350) a. Explain how the values in (1000, 2250) were determine and interpret what the outcome means in the context of this problem. b. Find any Nash equilibria for this game. c. Find any Pareto inferior outcomes for this game. d. Classify this game as Prisoners Dilemma, Chicken, Battle of the Sexes, or none of these named games.

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