5 Match the definition to each term listed below.NumberDefinition1A table that shows the payoffs each firm earns from every combination of firm strategies2An agreement among firms to charge the same price or otherwise not to compete3An option that is better than any alternative option regardless of what the other firm doesAn outcome of a strategic game from which neither rival wants to deviate45A game outcome in which players seek to increase their mutual payoff60A practice where one firm initiates a price change and the other firms follow the leader7A game in which the firms choose their strategies at the same time8One firm's gain must equal the other firm's loss9A game in which the sum of the two firms' outcomes is positive10Firms select their optimal strategies in a single time period without regard to possible interactions insubsequent time periods11A game that occurs more than onceInstructions: Enter a numeric response corresponding to the number of the definition listed above.a. A repeated game:b. Cooperative equilibrium: [c. Simultaneous game:d. Payoff matrix:e. Nash equilibrium:

e that shows the payoffs each firm earns from every combination of firm strategies eement among firms to charge the same price or otherwise not to compete ion that is better than any alternative option regardless of what the other firm d come of a strategic game from which neither rival wants to deviate outcome in which players seek to increase their mutual payoff tice where one firm initiates a price change and the other firms follow the leader in which the firms choose their strategies at the same time arm's gain must equal the other firm's loss in which the sum of the two firms' outcomes is positive select their optimal strategies in a single time period without regard to possible quent time periods that occurs more than once a numeric response corresponding to the number of the definition listed above. librium: me:

e that shows the payoffs each firm earns from every combination of firm strategies eement among firms to charge the same price or otherwise not to compete ion that is better than any alternative option regardless of what the other firm d come of a strategic game from which neither rival wants to deviate outcome in which players seek to increase their mutual payoff tice where one firm initiates a price change and the other firms follow the leader in which the firms choose their strategies at the same time arm's gain must equal the other firm's loss in which the sum of the two firms' outcomes is positive select their optimal strategies in a single time period without regard to possible quent time periods that occurs more than once a numeric response corresponding to the number of the definition listed above. librium: me:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 4E

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In the Tech industry, Tesla and Toyota are two famous brands and compete. Recently, both firms are competing to raise funds from the likes of Soft banks and Yes Bank. Tesla is in talks to raise $600 million and speed up its acquisition plans while Toyota plans to secure at least $200 million in a new funding round this year. Since both firms are going the same investors, if both approach the Soft banks then Toyota is guaranteed to raise $200 million while Tesla will receive $400 million. If both approach Yes Bank, then Toyota will definitely receive $600 million while Tesla will get $400 million. However, if Toyota approaches Yes Bank while Tesla pursues Soft bank, they are guaranteed investments worth $400 million and $800 million. On the other hand, if Toyota pursues Soft Bank while Tesla is interested in securing Yes bank’s funding, they each secure $600 million. a) Solve the Nash equilibrium for the above scenario as a simultaneous game. b) Now model the above scenario as a…
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