The incumbent offers payments t1 and t2 for buyer 1 and 2, respectively, in exchange for an exclusive contract. If at least one buyer accepts an exclusive contract, there is no entry and both buyers get zero surplus. If both buyers reject the exclusive contract, entry occurs and buyer 1 gets a surplus of 90 while buyer 2 gets 130. The buyers decide simultaneously whether to accept or reject the offer. Assume that if a buyer gets the same payoff with both options, he/she accepts the exclusive contract. What are the contract offers t1 and t2 that minimise the payment of the incumbent to the buyer and prevent entry? B2 B1 Аcсept Reject Ассept t, t2 t,, 0 Reject 0, t2 90, 130 Page 10 O t1 = 0 and t2 = 90 O t1 = 130 and t2 = 90 O t1 = 0 and t2 = 220 O t1 = 90 and t2 = 130 O None of the above.
The incumbent offers payments t1 and t2 for buyer 1 and 2, respectively, in exchange for an exclusive contract. If at least one buyer accepts an exclusive contract, there is no entry and both buyers get zero surplus. If both buyers reject the exclusive contract, entry occurs and buyer 1 gets a surplus of 90 while buyer 2 gets 130. The buyers decide simultaneously whether to accept or reject the offer. Assume that if a buyer gets the same payoff with both options, he/she accepts the exclusive contract. What are the contract offers t1 and t2 that minimise the payment of the incumbent to the buyer and prevent entry? B2 B1 Аcсept Reject Ассept t, t2 t,, 0 Reject 0, t2 90, 130 Page 10 O t1 = 0 and t2 = 90 O t1 = 130 and t2 = 90 O t1 = 0 and t2 = 220 O t1 = 90 and t2 = 130 O None of the above.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:The incumbent offers payments t1 and t2 for buyer 1 and 2, respectively, in exchange for an exclusive contract.
If at least one buyer accepts an exclusive contract, there is no entry and both buyers get zero surplus.
If both buyers reject the exclusive contract, entry occurs and buyer 1 gets a surplus of 90 while buyer 2 gets 130.
The buyers decide simultaneously whether to accept or reject the offer. Assume that if a buyer gets the same payoff with both options, he/she accepts the exclusive
contract.
What are the contract offers t1 and t2 that minimise the payment of the incumbent to the buyer and prevent entry?
B2
B1
Ассept
Reject
Ассept
t1, t2
t,, 0
Reject
0, t2
90, 130
Page 10
t1 = 0 and t2 = 90
t1 = 130 and t2 = 90
t1 = 0 and t2 = 220
t1 = 90 and t2 = 130
O None of the above.
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