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Title: Two firms in a local market compete in the manufacture of cyberwidgets. Each firm must decide if ... Post by: corie on Oct 25, 2017 Two firms in a local market compete in the manufacture of cyberwidgets. Each firm must decide if they will offer a warranty or not. The pay-offs of each firm's strategy is a function of their competitor as well. The pay-off matrix is presented below.
If firm #1 announces it will offer a warranty regardless of what firm #2 does, is this a credible threat? Why or why not? Title: Re: Two firms in a local market compete in the manufacture of cyberwidgets. Each firm must decide ... Post by: Bart_arg on Oct 25, 2017 Content hidden
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