Purchase Solution

game theory in marketing

Not what you're looking for?

Ask Custom Question

In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price(up) or monopoly price (down). Han can choose a given column of outcomes by choosing to offer a limit price (left) or monopoly price (right). Neither firm can choose which cell of the payoff matrix to obtain; the payoff for each firm depends upon the pricing strategioes of both firms.

Han

Coa Pricing Strategy Limit Price Monopoly Price
Limit Price $1.5 billion,$3billion $2.5 billion,$2 billion
Monopoly Price $1 billion,$4 billion $1.75 billion,$3 billion

Is there a dominant strategy equilibrium in this problem? If so, what is it?

Is there a Nash equilibrium in this problem? If so, what is it?

Purchase this Solution

Solution Summary

The solution examines game theory in marketing. The limit pricing payoff matrix is determined. Whether there is a Nash equilibrium in the problem is determined.

Purchase this Solution


Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.