Reference no: EM131288606
This question examines the oligopoly market for lattes on the University of Florida campus. You will use a normal form game to examine the incentives for different pricing strategies of two firms. You will identify whether either or both firms have a dominant pricing strategy, examine whether the game exhibits a Nash equilibrium, and discuss whether the game presents an opportunity to collude.
Lattes are produced by two different firms on the UF campus, Books and Beans (BB) and Campus Coffee (CC). Each firm can charge either $2.00 or $3.00 for its lattes. Below, you are provided with a payoff matrix that offers each firm's profits for all combinations of firms' strategies.
CC charges $2.00CC charges $3.00
BB charges $2.00BB: $95
CC: $95BB: $105
CC: $65
BB charges $3.00BB: $65
CC: $105BB: $80
CC: $80
Task 1: Does Books and Beans (BB) have a dominant pricing strategy? If so, what is its dominant strategy?
Task 2: Does Campus Coffee (CC) have a dominant pricing strategy? If so, what is its dominant strategy?
Task 3: Identify any Nash equilibriums in this pricing game. Hint: It is considered good form to denote outcomes by the strategy combination that gets you there, not by the resulting payoffs.
Task 4: Could the two firms do better than the Nash equilibrium by colluding and choosing another strategy?
|
Debt and equity securities
: Debt and equity securities are classified in the following ways: trading securities held-to-maturity securities available-for-sale securities all of these choices are correct
|
|
Create your own merchandising philosophy
: Create your own merchandising philosophy. Describe your philosophy, and propose the manner in which you would use it to enhance your business.
|
|
Name principal modes of failure of both tensile and shear
: Name the principal modes of failure of both tensile and shear joints ? Describe or list the criteria a bolted joint designer must consider when selecting bolt size and material for a new joint ? Will short, fat bolts generally work better than lon..
|
|
What is the amount of underapplied or overapplied overhead
: Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. What..
|
|
Examine incentives for different pricing strategies
: This question examines the oligopoly market for lattes on the University of Florida campus. You will use a normal form game to examine the incentives for different pricing strategies of two firms. You will identify whether either or both firms hav..
|
|
Respond to the given thoery on terrorist attacks
: Respond to the Given Thoery on terrorist attacks:Living as a "frail elder" in NYC during the 2001 terrorist attacks, the challenges faced would be greater for this urban population group because living alone with no support system would make it mor..
|
|
Lifo method for tax accounting purposes
: Under what conditions would a compnay want to use the FIFO method to account for inventory for financial reporting purposes and the LIFO method for tax accounting purposes? if is this allowed Why or Why not?
|
|
What does aflamnah do to protect potential investors
: Find another crowdfunding site and describe two projects featured on that site.- What does Aflamnah do to protect potential investors?
|
|
What must bolts in a shear joint do to prevent its failure
: Describe some of the factors that make it difficult to create an exact and predicted amount of clamping force during assembly ? How does an external load on a tensile joint affect the clamping force, and what else does it affect?
|