Two companies, Alphabeta and Pineapple, decide to bid on a startup's acquisition. Alphabeta can choose between offering a package worth $1 million or $3 million, and Pineapple can choose between offering a package worth $1.5 million or $2.5 million. The company will accept the higher bid. Since the company has a critical patent, the winning company will gain 1% market share from the losing side. This market share worth $2 million for both Alphabeta and Pineapply. 1. Is this game a two-person, zero-sum game? Justify your answer. 2. Write down the payoff table of this game. 3. Formulate the problem as a linear program (you can pick either company as the decision-maker). You do NOT need to solve it
Two companies, Alphabeta and Pineapple, decide to bid on a startup's acquisition. Alphabeta can choose between offering a package worth $1 million or $3 million, and Pineapple can choose between offering a package worth $1.5 million or $2.5 million. The company will accept the higher bid. Since the company has a critical patent, the winning company will gain 1% market share from the losing side. This market share worth $2 million for both Alphabeta and Pineapply. 1. Is this game a two-person, zero-sum game? Justify your answer. 2. Write down the payoff table of this game. 3. Formulate the problem as a linear program (you can pick either company as the decision-maker). You do NOT need to solve it
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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its just 1 question with parts please answer corrcetly. thank you
![Two companies, Alphabeta and Pineapple, decide to bid on a startup's acquisition. Alphabeta can choose
between offering a package worth $1 million or $3 million, and Pineapple can choose between offering a
package worth $1.5 million or $2.5 million. The company will accept the higher bid. Since the company has
a critical patent, the winning company will gain 1% market share from the losing side. This market share
worth $2 million for both Alphabeta and Pineapply.
1. Is this game a two-person, zero-sum game? Justify your answer.
2. Write down the payoff table of this game.
3. Formulate the problem as a linear program (you can pick either company as the decision-maker). You
do NOT need to solve it.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9b91490-7014-4990-b9a4-62583a5b405c%2F09710863-9b0a-46a4-953a-c904144bfc17%2Ftx54k7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Two companies, Alphabeta and Pineapple, decide to bid on a startup's acquisition. Alphabeta can choose
between offering a package worth $1 million or $3 million, and Pineapple can choose between offering a
package worth $1.5 million or $2.5 million. The company will accept the higher bid. Since the company has
a critical patent, the winning company will gain 1% market share from the losing side. This market share
worth $2 million for both Alphabeta and Pineapply.
1. Is this game a two-person, zero-sum game? Justify your answer.
2. Write down the payoff table of this game.
3. Formulate the problem as a linear program (you can pick either company as the decision-maker). You
do NOT need to solve it.
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