QUESTION 2 (CLO3) Suppose that two Japanese companies, Hitachi and Toshiba, are the sole producer… 1 answer below »


QUESTION 2 (CLO3) Suppose that two Japanese companies, Hitachi and Toshiba, are the solitary origin of a microprocessor driblet used in a estimate of opposed brands of single computers. Take that aggregate call-for for the driblets is agricultural and that each decided beak the corresponding charge for the driblets. Each decided’s bargain divide and income are a discharge of the majority of the promotional antagonism used to raise its account of the driblet. Also, take that solely two strategies are available to each decided — a poor promotional antagonism (budget) and an bulky promotional antagonism (budget). If the two decideds pledge in a poor promotional antagonism, each decided allure merit a quarterly emolument of $7.5 darling. If the two decideds agree an bulky promotional antagonism, each decided allure merit a quarterly emolument of $5.0 darling. With this diplomacy association, bargain divide and aggregate sales allure be the corresponding as for a poor promotional antagonism, but promotional costs allure be loftier and hereafter income allure be inferior. If either decided pledges in a poor promotional antagonism and the other decided agrees an bulky promotional antagonism, then the decided that adopts the bulky antagonism allure growth its bargain divide and merit a emolument of $9.0 darling, inasmuch-as the decided that elects the poor antagonism allure merit a emolument of solely $4.0 darling.a. Develop a payoff matrix for this decision-making quantity. (6 marks)
b. In the insufficiency of a astringent and enforceable undertaking, determine the dominant advertising diplomacy and the partiality payoff for Hitachi. Explain. (4 marks)
c. Determine the dominant advertising diplomacy and the partiality payoff for Toshiba. Explain (4 marks)
d. Explain why the decideds may elect not to state their dominant strategies whenever this diversion is many aggravate multiple decision-making periods. (6 marks)