Imagine That a New Product Becomes Available to the Public

question 11

Essay

Imagine that a new product becomes available to the public tomorrow-a personal transportation device that can move individuals or cargo from place to place instantly (yes,just like Star Trek).Industries such as airlines,auto manufacturing,railroads,and delivery services would immediately enter a severe decline.What advice would you give the firms in those industries? What strategies should they pursue,and why?

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Definitions:

Payoff Matrix

A table that displays the potential outcomes for each player in a game, given the choices of all players.

Gains and Losses

The difference between the amount earned and the amount spent in buying, operating, or producing something.

Duopoly

A market structure characterized by two producers or sellers dominating the market.

Dominant Strategy

In game theory, a strategy that is optimal for a player, regardless of the strategies chosen by other players in the game.