Recall the price matching game we discussed in class video. The main conclusion we can draw from this analysis was a. price matching acts like excess capacity because it deters entry into the market b. price matching can result in consumers paying higher than competitive prices c. price matching re-enforces the Nash equilibrium of low competitive pricing d.firms will invest in productive capacity to obtain economies of scale

Recall the price matching game we discussed in class video. The main conclusion we can draw from this analysis was a. price matching acts like excess capacity because it deters entry into the market b. price matching can result in consumers paying higher than competitive prices c. price matching re-enforces the Nash equilibrium of low competitive pricing d.firms will invest in productive capacity to obtain economies of scale

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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Question

Recall the price matching game we discussed in class video. The main conclusion we can draw from this analysis was

a. price matching acts like excess capacity because it deters entry into the market

b. price matching can result in consumers paying higher than competitive prices

c. price matching re-enforces the Nash equilibrium of low competitive pricing

d.firms will invest in productive capacity to obtain economies of scale

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