Q there are three major network affiliate television

Assignment Help Business Economics

Reference no: EM13351647

Q. There are three major network affiliate television stations in Hicksville: RBC, CBC and MBC. All three stations have the option of airing the evening network-news program live at 6:00 pm or in a delayed broadcast at 7:00 pm. By regulation, they may not choose other times. Each station's objective is to maximize its viewing audience, in order to maximize the station's advertising revenue. The table below gives the percentage of Hicksville's total population "captured" by each station as a function of the time at which each news program is shown. The numbers do not sum to 100 since not everyone always watches TV.

Times Chosen Audience Capture
MBC RBC CBC MBC RBC CBC
6:00 pm 6:00 pm 6:00 pm 32 14 24
6:00 pm 6:00 pm 7:00 pm 27 8 30
6:00 pm 7:00 pm 6:00 pm 24 30 16
6:00 pm 7:00 pm 7:00 pm 50 13 12
7:00 pm 6:00 pm 6:00 pm 30 16 24
7:00 pm 6:00 pm 7:00 pm 24 30 16
7:00 pm 7:00 pm 6:00 pm 14 30 23
7:00 pm 7:00 pm 7:00 pm 32 14 24

1) Suppose that the choices of all three stations are made simultaneously. Find the Nash equilibrium(s). (Hint: Try to set this up so it looks more like a normal form game. To do this for three players, use two 2*2 matrices: let MBC choose the matrix, RBC the row and CBC the column).

2) Suppose now that the game is played sequentially. MBC moves first. RBC moves second and CBC moves third. Each station can observe all previous moves before making her choice. Explain what will happen.

3) Look at your answers to questions (1) and (2). Give an intuition why there is, or is not, a difference in the outcome.

Reference no: EM13351647

Questions Cloud

A farmer has a production function fl where the input is : a farmer has a production function fl where the input is capital l. the cost of this loan is l1i. the farmer also has

Qwatch the video titled fear the boom and bust using the : q.watch the video titled fear the boom and bust. using the tools of macroeconomics identify the primary difference

Qgeneral growth properties many analysts expected ggp : qgeneral growth properties many analysts expected ggp equity holders to lose most or all of their financial interests

Qvisit a local restaurant for a meal or imagine carefully : qvisit a local restaurant for a meal or imagine carefully about your most current restaurant experience.required1. list

Q there are three major network affiliate television : q. there are three major network affiliate television stations in hicksville rbc cbc and mbc. all three stations have

Qneed help with analysis of coca-cola company as of : qneed help with analysis of coca-cola company as of year-end 2012comparative financial statement analysis and ratio

Qsuppose you are attempting to buy a used bicycle and you : q.suppose you are attempting to buy a used bicycle and you are bargaining with the owner over the sale price. the bike

Q george company has a standard costing system the : q george company has a standard costing system. the subsequent data are available for julyactual manufacturing overhead

Q research the current value of the following economic : q. research the current value of the following economic indicators gdp cpi nonfarm payroll employment industrial

User Account

All Pages