Consider the following the pricing game in which Greyhound and Trailways simultaneously choose the price of a seat on their buses from Philly to Allentown. Their choices are: Greyhound: $10, $20, or $50 Trailways: $30 or $40 Assume there are 100 customers who will split evenly between the bus lines if the prices are within $10 of each other. If the prices are more than $10 apart, then 70 customers will take the cheaper seats and 30 will take the more expensive seats. Write down the payoff matrix for this game. Remember, payoff revenue= (price per seat)x(number of customers)
Consider the following the pricing game in which Greyhound and Trailways simultaneously choose the price of a seat on their buses from Philly to Allentown. Their choices are: Greyhound: $10, $20, or $50 Trailways: $30 or $40 Assume there are 100 customers who will split evenly between the bus lines if the prices are within $10 of each other. If the prices are more than $10 apart, then 70 customers will take the cheaper seats and 30 will take the more expensive seats. Write down the payoff matrix for this game. Remember, payoff revenue= (price per seat)x(number of customers)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the following the pricing game in which Greyhound and Trailways simultaneously choose
the price of a seat on their buses from Philly to Allentown. Their choices are:
Greyhound: $10, $20, or $50
Trailways: $30 or $40
Assume there are 100 customers who will split evenly between the bus lines if the prices are within
$10 of each other. If the prices are more than $10 apart, then 70 customers will take the cheaper
seats and 30 will take the more expensive seats. Write down the payoff matrix for this game.
Remember, payoff revenue =(price per seat)x(number of customers)
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BIUA e T](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8404e81-19b4-46a6-b82e-4d4eb6687a09%2F5ec08e74-8807-49c4-bc21-d8f6a85bf89e%2Fnplfnrj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following the pricing game in which Greyhound and Trailways simultaneously choose
the price of a seat on their buses from Philly to Allentown. Their choices are:
Greyhound: $10, $20, or $50
Trailways: $30 or $40
Assume there are 100 customers who will split evenly between the bus lines if the prices are within
$10 of each other. If the prices are more than $10 apart, then 70 customers will take the cheaper
seats and 30 will take the more expensive seats. Write down the payoff matrix for this game.
Remember, payoff revenue =(price per seat)x(number of customers)
Edit
View Insert Format
Tools
Table
12pt v Paragraph
BIUA e T
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