StudentShare solutions

# Assignment Example

## Extract of sample

The payoff for SS will be .1 and .03, if it chooses to reduce the price in conjunction with two different strategies by SIA.
Ans 3) Yes there exists Nash equilibrium (Non-cooperative equilibrium) as the firms will not cooperate or collude as there can be no legally binding contract among them to keep the prices same and in absence of which each firm would fear that even if keeping price normal offers highest pay out overall and higher than what they would get in case they don’t cooperate, the other firm may cut the price an take the market share away from the firm keeping price normal. Thus both firm fearing this would play safe and reduce the price. The combination of these two price cutting strategy by both the firm will entail a Nash equilibrium which is represented in cell D.
Ans 4) No they are not likely to achieve their best outcome which would have been in cell C and B for SIA and SS respectively. In fact they would have been happier in cell A also but the irony is, fearing that they might be suckered by their competitor, they will avoid reaching such outcome and settle for the one that offers them utmost safety and not payoff.
Ans 5) Repeated games can be classified in two categories finitely repeated and infinitely repeated. In the former case the number of games is fixed and each player is aware of such number, while in the latter the number of such repetition is not known. In repeated games the firms may achieve cooperative equilibrium as each firm can punish the other one for suckering it in the next game and thus “Tit for tat” plays out which leads to cooperation in repeated games. Each firm over a period builds a reputation and they start trusting each other. But in case of finite games the theoretical understanding says they will not cooperate as in the last game both would like to defect and since in the last game no cooperation is expected in the second last game both would also like to defect and working backwards in ...Show more

## Summary

SS will have to consider what SIA would do in order to decide the best strategy for itself but since there is no way to exactly find that out, it will have to make a guess. Apart from this looking at the payoffs of various strategies, It realizes that choosing to reduce price…
Author : schmelerjeffere
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Assignment"
with a personal 20% discount.
Grab the best paper

### Check these samples - they also fit your topic

Assignment
Coping strategies differ with personal attributes, situational factors and availability of these strategies to expatriates. On this basis, authors have tried to determine how time of
3 pages (750 words) Assignment
Assignment
Key Alternatives: Andreas can choose between to leave the job and hunt for a new job with similar position in other companies while looking after his family including children and parents. Or else he could
1 pages (250 words) Assignment
Assignment
CEOs are not solely responsible for the company’s liabilities, since they are part of its staff. Thus, such CEOs should receive their full payment according to
1 pages (250 words) Assignment
Assignment
Ryan is supposed to pay the Company because he had breached a contract. In respect of Restatement (Second) of Contract 241 (1981) clause the case has all elements of breach of contract. Mr. Ryan will have to pay the Company 10 % plus the
1 pages (250 words) Assignment
Assignment
Today’s families are filled with tension because women are more financial stable, and the society is inclusive (Lamanna & Riedmann, 2011). There is no longer generativity in today’s
1 pages (250 words) Assignment
ASSIGNMENT
tical risk arises from the fact that a sovereign country can change the “rules of the game” and the affected parties may not have effective recourse” (Eun and Resnick). The post of Susan is correct and she has also provided the definition of expropriation, which strongly
1 pages (250 words) Assignment
Assignment
Molecules at S0, S1, and S2 have distinguishing characteristics. It can also be studied in an ESP spectroscopy. It involves electronically exciting and quenching a molecule. Polarization helps in identification of
1 pages (250 words) Assignment
Assignment
From the two investment projects being considered by Canadian Metal Company, both have a positive net present value therefore in this case the investment that should be made is the one with a higher net present value which is the oil
1 pages (250 words) Assignment
Assignment
" Issue: The legal question that was asked was whether Price Waterhouse had a valid reason for refusing Ann Hopkins a endorsement
1 pages (250 words) Assignment
Assignment
may have cash tied in global sales hence increase the company’s borrowing base by considering the inventory and raw materials (Ambrose, Cheng & King, 2010). A good example is the Export-Import Bank of the United States, which is the official export credit bank in the U.S. Some
1 pages (250 words) Assignment
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Click to create a comment
Let us find you another Assignment on topic Assignment for FREE!