Scenario 13.16 Consider the Pricing Game Below

question 129

Multiple Choice

Scenario 13.16
Consider the pricing game below:
-Refer to Scenario 13.16. If the firms must choose their prices simultaneously,

• A) both firms will buy gelato.
• B) both firms will buy yogurt.
• C) two pure strategy equilibria exist, one in which Gooi alone buys a gelato machine and one in which Ici alone buys a gelato machine.
• D) the game has no pure strategy equilibrium.
• E) the game has no mixed strategy equilibrium.

---

Definitions:

Poisson Probability

A distribution used to predict the probability of a given number of events happening in a fixed interval of time or space, given a constant mean rate of occurrence.

Defects

Imperfections or faults in a product or process that deviate from desired performance or specification.

Normal Distribution

This denotes a probability distribution with symmetry at the mean, proving that nearer-to-mean data points occur more regularly than those farther away.

Mean

The mean of a collection of numbers, found by dividing their total sum by the quantity of numbers in the set.