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Question: suppose 2 companies are competing for a percentage of the...

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Suppose 2 companies are competing for a percentage of the market share, and the table below represents the market share change for company B as well as three strategies that companies A and B might employ.

A. If Company A offers a discount price and Company B offers a free gift with purchase, what will be the change in market share for company B?

B. Company A will want to maximize the minimum payoff, thereby employing the Maximin approach to the game. Which strategy will Company A select based on the Maximin approach?


C. Company B will select the strategy that minimizes the maximum payoff, thereby employing the Minimax approach to the game. Which strategy will Company B select based on this approach?

D. If a game is a mixed strategy solution, the players select their strategy based on a probability distribution. Let P(AB) = the probability that company A boosts advertising = 1/4 Let P(AF) = the probability that company A offers a free gift with purchase = 1/4 Let P(AD) = the probability that company A offers discounted price = 1/2 Calculate the Expected Gain in market share for company A across all 3 company B strategies. E(BB) = E(BF) = E(BD) =2. Suppose 2 companies are competing for a percentage of the market share, and the table below represents the market share change for company B as well as three strategies that companies A and B might emplov Company B Free gift with purchase Company A Boost advertising Free gift with p Discount price for repeat Boost advertising Discount price for repeat -1 -2 A. IkCompany A offers a discount price and Company B offers a free gift with purchase, what will be the change in market share for company B? B. Company A will want to maximize the minimum payoff, thereby employing the Maximin approach to the game. Which strategy will Company A select based on the Maximin approach? C. Company B will select the strategy that minimizes the maximum payoff, thereby employing the Minimax approach to the game. Which strategy will Company B select based on this approach? D. If a game is a mixed strategy solution, the players select their strategy based on a probability distribution. Let P(AB) the probability that company A boosts advertising Let P(AF) the probability that company A offers a free gift with purchase Let P(AD)- the probability that company A offers discounted price2 Calculate the Expected Gain in market share for company A across all 3.company B strategies E(BF)

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