Suppose Two Companies,Sony and Magnavox,are Competing in a Duopoly

question 152

Essay

Suppose two companies,Sony and Magnavox,are competing in a duopoly.If both companies charge a high price,they each make $700 million in economic profit.If both companies charge a low price,they each make $500 million in economic profit.If one company charges a high price and the other a low price,the company charging the higher price makes $450 million in economic profit and the company charging the lower price makes $800 million in economic profit.
a.Complete the payoff matrix below for Sony and Magnavox.

b.Find the Nash equilibrium.

Identify the importance of strategies, including aggressive behavior and threats, in shaping negotiation outcomes.

Understand the psychological and practical outcomes of negotiations not reaching an optimal agreement.

Recognize strategies to manipulate the negotiation environment, including preventing committed positions and managing the costs of delay.

Understand the fundamental characteristics and purposes of different epidemiological study designs.