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What does the simultaneous move game look like

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Point 1: Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers. Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices. Suppose that a division can purchase hairnets for $8 independently. If they all purchase through the central system, hairnets cost $6. But if one division uses the system and the other purchases independently, the cost to the first is $9 while the cost to the second is $7.

Question 1: What does the simultaneous move game look like and what is the equilibrium?

Reference no: EM132516287

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What does the simultaneous move game look like : What does the simultaneous move game look like and what is the equilibrium? Nestlé's has over one hundred production facilities that all purchase
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