Consider a potential takeover of Crown Resorts with a residual value of $8 billion dollars by Blackstone. Crown Resorts can set a price p (billiondollars). Having seen Crown Resorts's offer Blackstone can either accept or reject. If Blackstone accepts the payoffs are p to Crown Resorts and 20- p to Blackstone. If Blackstone rejects the offer Crown Resorts keeps its residual value while Blackstone can proceed with another takeover andgets a payoff of $15 billion dollars . With respect to the subgame perfect equilibrium, which statements are true? Choose ALL correct statements.Crown Resorts offers any p 2 8Crown Resorts offer aps 20Blackstone accepts the offer he gets in equilibriumBlackstone accepts any offer of p 2 0.Blackstone rejects the offer he gets in equilibrium

Considering the subgame equilibrium, the option which are correct here are those which state that…

Answered: Consider a potential takeover of Crown…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Alibaba is a Chinese e-commerce firm similar to Amazon.com in the United States. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payments industries so it would have more control over the entire process. Alibaba's acquisitions are an example of a) full-line forcing. b) vertical channel integration. c) channel cooperation. d) horizontal channel integration. e) digital distribution.
Based on United States Census Bureau data for 2017, for the utilities (electricity and gas) industry the four firm concentration ratio (C4) is 16.2 percent and the Herfindahl-Hirschman index is 161.4. Why might the actual concentration, and therefore market power enjoyed by a specific utility company in a state, be greater than what is indicated by these numbers? These ratios are calculated for the entire country, and not for a specific city or state. Please give an explanation.
Which of the following statements regarding business ethics is NOT correct? According to Bagley in The Ethical Leader's Decision Tree, directors' obligation is to manage the corporation "for the best interests of the corporation", which might not be “maximizing shareholder value" all the time. According to Bagley in The Ethical Leader's Decision Tree, when there is no established ethics policy, directors can turn to their company values statement for guidance about what constitutes ethical business behavior. According to Epley and Kumar in How to Design an Ethical Organization, a better way to manage ethics is to design workplace context that encourage good behavior. Keeping prosocial values top of mind for employees as they make decisions will reduce the likelihood of transgressions. According to Epley and Kumar in How to Design an Ethical Organization, the "tone at the top" is a much more significant driver of employees' behavior than "tone in the middle".
I was hoping I could have some help on parts c-e of this problem I’m getting a little stuck on making sure my values are correct given this this is a cournot duopoly model.
The pricing strategies of MTN and Vodacom are shown in the table below. They must decide whether to charge a high or low price for their internet service. The four pairs of payoff values represent what each company expects to earn or lose in millions of rands, depending on the pricing strategy chosen by the other company. Vodacom's Price Strategy MTN's Price Strategy High Price Low Price High Price Vodacom +R200 200 Vodacom-R100 MTN +R500. Low Price a) Vodacom will charge a low price; MTN will charge a high price. b) Vodacom will charge a high price; MTN will charge a low price.. c) Both Vodacom and MTN will charge a low price. d) Both Vodacom and MTN will charge a high price. Vodacom +R500 MTN-R100 Vodacom+R100 MTN+R100 If it's expected that the incomes of people living in rural South Africa is expected to increase, what will the equilibrium outcome be, ceteris paribus?
Assuming Company ABC currently holds the largest market share in a town, making it the dominant player. Its only competitor, Company XYZ, sells a similar product but has a smaller market share. Presently, ABC earns a profit of $1,800, while XYZ earns $1,200. ABC is now confronted with a challenge: its rival, XYZ. is signaling a potential price reduction to attract more customers. ABC has two strategic options: lower its price or maintain the price. If ABC reduces its price before XYZ does, it could potentially increase its profit to $2, 000, while XYZ might see its profit halve. However, if both ABC and XYZ lower their prices, leading to a price war, ABC's profit could drop by $200, and XYZ's profit could decrease by $300. On the other hand, if ABC chooses to retain its current pricing while XYZ reduces its price, ABC's profit might decline to $1.300. Meanwhile, XYZ could potentially attract more customers and increase its profit to approximately $1, 500. Illustrate the market…
Sort each of the scenarios as to whether or not they are characteristic of price leadership. Assume that in all of the scenarios, the companies mentioned are the largest in their respective oligopolies. Characteristic of price leadership Not characteristic of price leadership Answer Bank Open collusion occurs between The Big Four accounting firms to fix prices. After a tax on junk food is passed, Cokesi decides to raise prices on soda, the first price increase since high fructose corn syrup prices spiked. A price war breaks out between the two primary detergent companies, UniGamble and Proctlever. Viscard chooses to set interest rates at below profit-maximizing rates in order to block entry of new firms. In a press release, Shell announces that it will be increasing prices on unleaded fuel.
What is the, HHI, Herfindahl-Hirschman Index for an industry where six companies each have a market share of 15% and one company which has a market share of 10%?
In the United States, Procter & Gamble have various laundry detergent brands such as Tide and Gain. The reason they have these different brands is because consumers are heterogeneous and not homogeneous. True False

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