Determine the Nash equilibrium. (v) Is this a prisoner's dilemma? How do you know?
The Nash equilibrium in this payoff matrix is demonstrated when both Firm 1 and Firm 2 elect to charge high prices. In addition to producing identical 5% increases in profit for both firms, neither firm has an incentive to lower prices, and thus neither firm stands to gain by unilaterally adjusting its pricing policy.
2.) Respond to the charge that immigrants flood the labor market and drive down wages in the U.S.
As the increasingly politicized nature of America's immigration debate has been compounded by the effects of a prolonged national recession, major media outlets and economic pundits have decried the so-called "wage-dampening" effect caused by unchecked illegal immigration (Camarota, 2011). While several studies have indeed demonstrated at list a causal link between the influx of undocumented workers, who are usually willing to perform hard labor for cheaper wages than American citizens,...
No matter the exact figure, however, Sarah would have to earn an additional amount equal to the difference between renting an buying the building, as both options represent divergent investment strategies. 2.) According to Milton Friedman, "Business has only one social responsibility, to make profits (as long as it stays within the legal and moral rules of the game established by society). Few trends could so thoroughly undermine the very
Boyd Gaming Part III Boyd Gaming is considering purchasing some or all of Station Casinos. The company's current position is as a "local's focused" casino company, in particular with respect to its Las Vegas operations and its Coast Casinos operations as well. Boyd has already identified that it needs to become bigger in order to implement a strategy based on operational excellence, but it also wants to pursue customer intimacy as
Another study found that there are many different strategies that are utilized when information technology is developed within the federal government and many of these tend to come not from the top managers but from the management instead (Gupta, Holladay, & Mahoney, 2000). Much of this has to do with the fact that the top managers in the federal government are often political appointees and therefore know somewhat less about
Business Economics/Economic policy Competitive Balance Competitive balance is an important aspect to maintain in a league sports structure as it is a direct factor of the degree of uncertainty that could exist within a sporting event. The general belief is that higher uncertainty creates higher buzz and excitement about the end outcome. The customers prefer to have competitive balance as well as it increases fan interest in teams whereas a lack
The applicability of Activity-Based Costing for decision making is directly linked to the influences that ABC has over process control. In this order of ideas, by better identifying the incurred costs or the overhead, managers can better monitor and control the evolution of products, prices, costs and consequently, profits. ABC identifies the costs incurred by each item in terms of resources consumed. Therefore, with the aid of ABC, organizational managements
Personal Skills Assessment and Analysis Report Developing optimally effective managerial skills can be a challenging enterprise in any industry, and it is axiomatic that it is essential to measure individual strengths and weaknesses in order to identify strengths to build on as well as opportunities for improvement. To this end, this paper provides a review of the relevant literature concerning effective management practices in general and how these practices can be
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