Explore BrainMass
Share

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

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

What 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?

© BrainMass Inc. brainmass.com March 21, 2019, 10:22 pm ad1c9bdddf
https://brainmass.com/economics/game-theory/what-mcdonald-s-corp-reduced-the-price-of-its-big-mac-by-75-414882

Solution Preview

What 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?

McDonald's offered ...

Solution Summary

What 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