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    game theory

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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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    As we know that for a oligopoly competitive market the game theory is a mathematical technique ...

    Solution Summary

    In this case, game theory is applied.