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You, a real-estate developer, own a piece of land in Nassau, Bahamas, next to an equal size piece of land owned by a competitor. Both of you have the choice of building a casino or a hotel. Your payoffs are as follows:
Casino
Hotel
Â
3 , 3
20 , 5
5 , 20
2 , 2
Â
How much is it worth to you to get your casino building permit first?
A) $2 million
B) $3 million
C) $15 million
D) $17 million
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