Solve the following using Game Theory.
Consider a scenario where two retail companies, Company P and Company Q operate in a shopping mall and are both considering implementing a discount strategy to attract more customers. The shopping mall management has limited space for promotional displays, and they need to decide whether to allow both companies to offer discounts simultaneously or only permit one company to do so The companies can either choose to offer a discount or not.
The profit structure in thousands of dollars for the companies is as follows:
If both companies offer a discount: Company P gets $ Company gets $ and each company incurs an additional cost of $ due to the promotional expenses.
If only Company P offers a discount: Company P gets $ Company Q gets $ and Company P incurs an additional cost of $
If only Company offers a discount: Company P gets $ Company gets $ and Company incurs an additional cost of $
If neither company offers a discount: Company P gets $ Company gets $ and there are no additional costs.
