9781118041581

Three airlines (A, B, and C) are competing for passengers on a lucrative long-haul air route. At present, the carriers are charg ...

In pursuing his or her objectives, how should a decision maker choose a course of action in competition with rivals who are acti ...

Sizing Up Competitive Situations 399 services, advertising, and so on. In broadest terms, an airline strategy would encompass ma ...

a greater or lesser degree. In the preceding chapter, we considered quantity and price competition between duopolists. In Chapte ...

Sizing Up Competitive Situations 401 demand is limited and extra flights are costly.) In Chapter 15, labor and management find t ...

management and union representatives negotiate a contract, they recognize that the bargaining will repeat itself three or so yea ...

Analyzing Payoff Tables 403 to NBC and CBS (two of the ratings leaders during the last decade) and focus on their programming de ...

In the ratings battle, each network’s sole interest is in maximizing its total audience.^3 With this goal in mind, what is each ...

Analyzing Payoff Tables 405 move, CBS should place its hit at 9 P.M. as a best response. The network out- comes are audiences of ...

Table 10.2 depicts the percentage increase in market share of firm 1 (the row player). For instance, if both firms adopt their f ...

Analyzing Payoff Tables 407 from its equilibrium play, it reduces its own payoff and increases the competi- tor’s payoff. Indeed ...

Nash equilibrium. Here each side’s action is a best response against the other’s. As long as each competitor is smart enough to ...

Analyzing Payoff Tables 409 Although particular payoffs vary, the strategic implications of the three payoff tables are the same ...

What if the rules of the competition allow communication between play- ers, and what if binding agreements are possible? Under t ...

Competitive Strategy 411 (i.e., all unaccepted shares) are bought for the lower $35 price. Therefore, the averageprice received ...

so-called Blu-ray format. The opposing side, led by Toshiba Corporation and backed by NEC Corporation and Microsoft, developed t ...

Competitive Strategy 413 video distributers, Blockbuster and Netflix, and major retailers such as Best Buy and Wal-Mart to its s ...

But is Apple’s premium, proprietary platform strategy best generating max- imum iPhone profits in the long run? Industry skeptic ...

Competitive Strategy 415 is to stay out. Thus, entry by firm 1 alone is an equilibrium. By the same rea- soning, entry by firm 2 ...

Bargaining One of the most fertile domains for applying game theory is in the realm of bar- gaining and negotiation. The followi ...