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    Game Theory- Ford and GM

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    1. Why would Ford want to lower price while keep GM keeps it high?

    2. What is the best choice in this game when GM and Ford trust each other?

    3. What will the oligopolists choose if they do not trust each other?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:27 pm ad1c9bdddf
    https://brainmass.com/economics/game-theory/game-theory-ford-gm-57489

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    1) Ford would like to lower prices while GM keeps it high in order to capture the whole market share. It will enable Ford to capture those customers who have been hit by the GM's high prices. Price sensitive customers ...

    Solution Summary

    Ford would like to lower prices while GM keeps it high in order to capture the whole market share.

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