A Note On Sequential Game

777 Words May 18th, 2016 4 Pages
Sequential Game
I’m currently employed in the health care industry, but before my career began I worked for a major airline company for 5 years in various roles. Although I ended up choosing a career in the health care field because of its stability, I still find the airline industry a valuable and interesting market. To this day, I have many friends and acquaintances that still are employed within the industry and are involved in contracts negotiations for their respective companies. From experience and further research, I found two large companies, Boeing and General Electric (GE) who are two major players in the airplane and parts manufacturing market. In sequential game, there are two major players in the industry who have a team or an individual to negotiate terms for competitive pricing and make its best strategic moves or offers based on the principal conditions. In this game, each player (company) has to wait for their respected turn to negotiate the best deal with the perfect knowledge of the other player’s actions or state of mind. General Electric sells Boeing 777’s parts to Boeing in its downstream. GE is the first player to negotiate and may easily influence the outcome of the negotiation.
Game Tree
In this game tree, the two player’s state of minds and actions are displayed. Consider the case scenario of Boeing and General Electric (GE) playing a sequential game, GE makes the first move in the process followed by Boeing based on their interpretation of GE’s…
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