Scenario 13.16 Consider the Pricing Game Below

question 39

Multiple Choice

Scenario 13.16
Consider the pricing game below:
-Refer to Scenario 13.16. If Gooi can move first, and Ici threatens to buy yogurt machines, no matter what Gooi does,

• A) Gooi will have to buy gelato machines, so Ici will get its highest possible profit.
• B) Gooi will buy yogurt machines, which it otherwise wouldn't have, in order to retaliate.
• C) the equilibrium payoff of ($50,$50) will be enforced.
• D) Gooi will not change its behavior, because Ici's threat is not credible.
• E) Gooi will threaten to buy yogurt machines, no matter what Ici does, to see whether that will get the people at Ici to change their minds.

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Definitions:

Latent

Existing but not yet developed or manifest; hidden or dormant potential or qualities not yet visible.

Not Resolved

A situation or issue that has not been successfully addressed, fixed, or concluded.

Effective Conflict Resolution

Strategies and processes aimed at peacefully resolving disputes or disagreements to benefit all parties involved.

Underlying Causes

Fundamental reasons or factors that give rise to a particular problem or condition.