Question Details

[solution] » 1. a. For the following simultaneous advertising game, please

Brief item decscription

Step-by-step solution file


Item details:

1. a. For the following simultaneous advertising game, please
More:

Please look at the attached question and help me with this.


1.

 

a. For the following simultaneous advertising game, please determine if either firm

 

has a dominant strategy. The payoffs for NIKE are in the lower left comer of each

 

cell, and the payoffs for ADIDAS are in the upper right corner of each cell. Then,

 

please determine if the game has one or more Nash equilibria and state these

 

possible outcomes. ADIDAS

 

Ads

 

Ads

 

NIKE No Ads

 

$15 Million $30 Million $65 million $50 million

 

$ -5 Million No Ads $20 Million $5 Million

 

$10 Million b. For this sequential entry game, the incumbent firm can make an advertising

 

expenditure (i.e., sunk cost) to potentially deter entry. First, please determine the

 

entrant?s optimal decision if the incumbent advertises and if the incumbent does

 

not advertise. Recall that the number in the (x, y) is the incumbent?s profit, and the

 

second number is the entrant?s profit. Second, please determine the incumbent?s

 

optimal decision (Advertise or do not advertise). Third, please determine the

 

optimal outcome from the game if the sequence of decisions is reversed (i.e.,

 

the entrant moves first). Finally, what is the incumbent?s first-mover advantage?

 

Does not enter Does not advertise (1000, 0) Entrant

 

Enters (400,300) Incumbent

 

Does not enter (500, 0) Advertise

 

Entrant

 

Enters (200, -100) C. Convert this sequential game into a simultaneous game

 

First, please determine the entrant?s optimal decision if the incumbent advertises

 

and if the incumbent does not advertise. Recall that the number in the (x, y) is the

 

incumbent?s profit, and the second number is the entrant?s profit. Second, please

 

determine the incumbent?s optimal decision (Advertise or do not advertise). Third,

 

Determine the dominant strategies for both players and the Nash equilibrium if

 

any.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Feb 21, 2020

PRICE: $24

Solution~00065846295.zip (18.37 KB)

Buy this answer for only: $24

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now