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When McDonald's Corp. reduced the price of its Big Mac by 75

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When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't; within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald's plans?

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When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't; within two weeks ...

Solution Summary

When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth. It didn't; within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald's plans?

$2.19