MGMA01H3 Lecture Notes - Lecture 6: Tim Hortons, Monopolistic Competition, Starbucks
Document Summary
This week we started off by learning about game theory and we used the prisoner"s dilemma to understand the theory. I learned that the outcome of the game is determined actions of the initial party and their competitor. We spoke about the equilibrium in gains and how it happens a lot in marketing especially with coke and pepsi. We did the payoff matrix and came to the conclusion that whichever party is doing the analysis, it"s in their favour to continue advertising in order to main their market share. Moreover, we spoke about the four different types of competitive markets perfect competition, monopolistic competition, oligopoly and monopoly. I contributed to the discussion by providing the example of major coffee franchises such as tim. Hortons and starbucks versus privately owned corner coffee shops as an example for. We then moved onto talking about market segmentation, which i learned was all about breaking up customers into different groups based on their needs.
