Dominant strategy combination, Strategic Management

Janet decides to play a game with her children, Jay and Jill (who are fraternal twins) and Mo. Each child is in their own room and cannot communicate with each other. Suppose Jill and Jay share everything, while Mo, the older sister, never shares. Janet proposes to give each child an envelope with $9 in it, and they are given the option of keeping the money and giving back an empty envelope or leaving the money in the envelope when they return the envelope to Janet.

Janet will invite everyone to join her at the kitchen table, and will add $6 to the funds when she empties the envelopes, if there is still $9 in it. The children then get to split the funds and keep it.

a. How many strategy combinations are there? Let K stand for keep the $9, and let P stand for leaving the $9 in the envelope. Write out a table listing the strategy combinations in the first column, Jay's payoff in the second column, Jill's payoff in column three, Mo's payoff in column four and the total payoff in column 5.

b. Is there a dominant strategy combination? If so, what is it?


Posted Date: 3/6/2013 3:00:16 AM | Location : United States

Related Discussions:- Dominant strategy combination, Assignment Help, Ask Question on Dominant strategy combination, Get Answer, Expert's Help, Dominant strategy combination Discussions

Write discussion on Dominant strategy combination
Your posts are moderated
Related Questions

Advantages of divisional structures - Quicker decision making e.g. autonomous divisions do not have the long-winded process of a long chain of command when making competitive d

Strategic management is a systematic analysis of the internal and external factors to develop strategic actions for organizational goals (Dobson & Richards, 2004). Bread Talk is a

Q. What do you mean by Trade payable days? Trade payable days (turnover)   {Yearend trade payables / Credit purchases (or cost of sales)} x   365 days This is the length

In management strategic decision making involves great complexity, uncertainty and risk.  Describe the strategic decision making process and consider the effects of bounded rationa

After reading through the articles provided in your Assigned Reading and Research, Review one of the articles using the following format with the headings indicated in bold below:

#quesWhat features of Johnson & Johnson''s "Our Credo" made it so effective in guiding J&J''s response to the Tylenol tampering crisis? Where was J&J''s "Our Credo" in the run-up t

1) Company A wants to discourage unionization through the United Technical Workers of America. True or False: In order to do so, it can initiate an organizing campaign for the Tech

your own company. Consider how this organization has developed their strategic management. Then write an original article addressing how this organization selected a model of strat