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1. Two major wireless phone companies are going to offer 4G services in the country of Uruguay. Because of county regulations each company can only offer a single plan. The companies can only offer one of three possible plans. One of the companies (South Wireless) contracted a market study to estimate the potential number of customers under each circumstance. The table below shows the results of the marketing study:
Competitor
Plan A
Plan B
Plan C
South Wireless
1.5, 1.5
1.6, 1.4
2.6, 0.4
1.8, 1.6
2.0, 1.0
2.2, 0.8
1.2, 1.8
2.4, 0.6
Using your knowledge in game theory, which would be the best plan choice for South Wireless? Explain.
2. In two hundred words, describe two applications or cases of game theory in business.
Information regarding random samples of annual salaries
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