The win-win situation
Identify the necessary conditions for A to create a win-win situation in pricing T.
Explain whether A can satisfy these conditions based on its current situation. Propose and evaluate at least one strategy A could use if it wanted to try to create a win-win situation in its competition with G.
https://brainmass.com/economics/general-equilibrium/the-win-win-situation-39709
Solution Preview
The win-win situation after G enters the market should be the Nash equilibrium in solving the profit game by the payoff table, comparing to the "incredible threat" net present table equilibrium.
The first condition is to find out if it is win-win for G to enter the market. As shown by posting 39705, the pure-strategy Nash equilibrium is (No limit pricing, buy patent). So G enters the market and competes with A. (notice: the condition for A and G to reach this equilibrium is that ...
Solution Summary
The win-win situation is explicated.