A restaurant has a number of regular customers. Use game theory to explain how the repeated games...

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A restaurant has a number of regular customers. Use game theory to explain how the repeated games between the regular customers and the servers are played. a.What actions do the regular customers and the servers have? b.Is there a reason for regular customers to tip well?c.Is it reasonable to expect customers from other states who chance to drive through Tennessee to tip well?A restaurant has a number of regular customers. Use game theory to explain how the repeated games between the regular customers and the servers are played. a.What actions do the regular customers and the servers have? b.Is there a reason for regular customers to tip well?c.Is it reasonable to expect customers from other states who chance to drive through Tennessee to tip well?

Soma · Accepted Answer

a. 
In game theory, repeated games refer to a situation where same base games have been played with a number of repetitions. In this queueing question, the players (both customers and the servers) are the strategic individuals in real life. Game theory is the most popular tool to solve the queueing question. Both for repeating and non- repeating patrons, sub game perfect Nash equilibrium has been found. While the social norms play a major role in motivating for tips, but it is still unclear that whether repeated customers tip for better future service. (Nelson, 2017 )
b.

A restaurant has a number of regular customers. Use game theory to explain how the repeated games between the regular customers and the servers are played. a.What actions do the regular customers and...

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