Vodafone's decision Stop Stop (50, 60) Decislon Don't Stop Don't Stop (10, 90) (20, 25) 02's (85, 15)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose O2 and Vodafone are the only two telecommunications
companies in UK. Both companies are considering whether or
not to stop offering unlimited data plans. Each company has two
strategies: stop or don’t stop. The first entry in the brackets is the payoffs
of O2 and the second entry is the payoffs of Vodafone, both in $million.
What will be the dominant strategies of O2 and Vodafone and what will
be the Nash equilibrium? Explain your answers.

 

 

Vodafone's decision
Don't Stop
(10,90)
(20, 25)
Stop
02's
Stop
(50, 60)
Decislon Don't Stop (85, 15)
Transcribed Image Text:Vodafone's decision Don't Stop (10,90) (20, 25) Stop 02's Stop (50, 60) Decislon Don't Stop (85, 15)
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