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tealswan894Lv1
28 Sep 2019
The two leading U.S. manufacturers of high performance radial tiresmust set their advertising strategies for the coming year. Eachfirm has two strategies available: maintain current advertising orincrease advertising by 15%. The strategies available to the twofirms, G and B, are presented in the payoff matrix below.
Firm B
Increase Adv. Maintain Adv.
Firm G Increase Adv. 27, 27 50, 12
Maintain Adv. 12, 50 45, 45
The entries in the individual cells are profits measured inmillions of dollars. Firm G's outcome is listed before the comma,and Firm B's outcome is listed after the comma.
Which oligopoly model is best suited for analyzing this decision?Why? (Remember it is illegal to collude in the UnitedStates.)
Is there a dominant strategy for each firm? What is it?. Justifyyour choice
The two leading U.S. manufacturers of high performance radial tiresmust set their advertising strategies for the coming year. Eachfirm has two strategies available: maintain current advertising orincrease advertising by 15%. The strategies available to the twofirms, G and B, are presented in the payoff matrix below.
Firm B
Increase Adv. Maintain Adv.
Firm G Increase Adv. 27, 27 50, 12
Maintain Adv. 12, 50 45, 45
The entries in the individual cells are profits measured inmillions of dollars. Firm G's outcome is listed before the comma,and Firm B's outcome is listed after the comma.
Which oligopoly model is best suited for analyzing this decision?Why? (Remember it is illegal to collude in the UnitedStates.)
Is there a dominant strategy for each firm? What is it?. Justifyyour choice
Firm B
Increase Adv. Maintain Adv.
Firm G Increase Adv. 27, 27 50, 12
Maintain Adv. 12, 50 45, 45
The entries in the individual cells are profits measured inmillions of dollars. Firm G's outcome is listed before the comma,and Firm B's outcome is listed after the comma.
Which oligopoly model is best suited for analyzing this decision?Why? (Remember it is illegal to collude in the UnitedStates.)
Is there a dominant strategy for each firm? What is it?. Justifyyour choice
Paramjeet ChawlaLv8
28 Sep 2019