You Are Considering Launching a Strategic Alliance with a Competitor

question 153

Essay

You are considering launching a strategic alliance with a competitor to join your separate skills to develop a new jointly owned technology.Both you and your partner have the option of fully or partially supporting the alliance.Complete the payoff diagram to make this a Prisoner's Dilemma.
$$\begin{array} { | l | l | l | } \hline & { \text { You fully support alliance } } & \text { Youpartially support alliance } \\\hline \begin{array} { l } \text { Partrer fully } \\\text { supports alliance }\end{array} & \text { You: 100 } & \text { You: 150 } \\& \text { Partner: 100 } & \text { Partur: 50 } \\\hline \begin{array} { l } \text { Partrer partially } \\\text { supports alliance }\end{array} & \text { You: 50 } & \text { You: } \\& \text { Partner: 150 } & \text { Partne: } \\\hline\end{array}$$

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Definitions:

Clear Instructions

Explicit and unambiguous directions provided to carry out a task or procedure efficiently and effectively.

Agency by Operation of Law

A legal principle that creates an agency relationship under certain conditions, despite the lack of any agreement between the parties, for reasons of fairness or necessity.

Settlement Agreement

A legally binding contract that resolves a dispute between parties outside of court, usually involving some form of compensation.

Unable

The condition of not having the necessary means, knowledge, or opportunity to do something.