2.3 Dominant Strategy. Dominant Strategy Produces “A Higher

The decisions or strategies one company chooses will likely motivate other competitors to respond. Using the game theory allows a company to assess and understand more about itself and its competitors so that it can adjust and shape the competition to maximize its win probability (Johnson, 2014). Some examples of how A&D companies apply the game theory in their decision making are:

Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry

As for cost structures for this industry, the fixed costs are going to consist of machinery and equipment in order to produce the automobiles. These fixed costs also serve as a barrier of entry into the industry; small firms will not be able to afford the fixed costs. For the variable costs, labor, materials, and advertising are going to be the main costs (Investopedia, 2009). These costs also change according to the output produced; whether the companies cut back on production or increase in production. These costs don’t serve so much as a barrier of entry into the industry, but in order to compete in this industry, an entering firm must come up with them on an extremely large scale.

Diesel fuel prices also vary wildly depending on the season, region, and even individual fuel retailer, sometimes going for less than regular gasoline and sometimes going for more than premium.

Supply and demand is best describes as the varying of prices of a specific service, product or commodity and the desirability for consumers. In theory, the supply and demand model works best for markets that are normally in perfect competition. Now in order for this desired market to work, there has to be a numerous amount of sellers and a numerous amount of buyers that have no real or major impact on the pricing of goods and services. In the follow essay, we will receive a better understand on what the supply and demand really is, further discuss a brief historical perspective on the supply and demand in comparison to the fickle prices of gasoline, go into detail about government involvement in gasoline prices, and finally examine how the supply and demand of gasoline is applicable in our everyday lives.

1. Consider and discuss the impact of the rising price of gasoline on as many other products and services as possible.

Because, goods which produced by the company of Gasoline, gas, oil, and other, which is a important need for the people , When the price rise or falling (globally) does not affect on the quantity of demand and supply

A number of competitive strategies have been stated by studies, such as the classification system created by Chrisman et al (1988). However, the generic strategies identified by Porter (1985) remain the most popular theory over the years (Allen et al, 2007).

Tampa Tribune's dominated strategy is ____________ (low price, high price, it has no dominant strategy).It has no dominant strategy.Tampa Tribune has no dominant strategy.

St. Petersburg Times’ dominant strategy is high price. There strategy was determined by seeing what Tampa Tribune’s pick is, and then there for St. Petersburg Times’ needs to choosing the opposite. If Tampa Tribune choose low price, then St. Petersburg Times’ dominant strategy is low price.

Price is a key component in deciding how to make it from one place to another, because traveling any distance these days comes at some sort of cost. At one time, the car was the least expensive way to travel, because most people owned or had access to a car and gas prices were relatively affordable. However, even though newer cars are

Tampa does not have a dominant strategy. Furthermore, in game theory, “A dominant strategy is a strategy or action that provides the best outcome no matter

Game theory cannot always predict reliable outcomes for real-life situations as it is more an

(To make a summary of the article while answering the question, the answer directly related to the questions are highlighted )

The main purpose of the chapter entitled "A Theory of Games" is to explain what is known as game theory. Game theory is a mathematical approach to economics which uses a special language and notation. Specifically, the chapter explains that games theory studies the strategies that people use when they make decisions. There is strategy employed any time a person makes a decision, whether or not they themselves are aware that they are employing any type of strategy. Indeed, this strategizing is often subconscious because we have trained our brains from birth to make choices and by the time people reach adulthood these strategies have become ingrained in the mind to the point where they can be subconsciously activated. The author further asserts that by playing games where strategy is employed instead of games which are based on probability will further the brains ability to strategize and assist them mentally in other areas. John von Neumann, who McDonald credits with the formulation of game theory attempted to apply all his theories in this to physical gaming, explaining that by fully understanding the best strategies possible, then the individual would always win the game, whether actual or metaphorical.