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corie corie
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6 years ago
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?
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Microeconomics

Microeconomics


Edition: 8th
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Bart_argBart_arg
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6 years ago
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corie Author
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6 years ago
Brilliant ツ
tcat
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
kiara23247843
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2 hours ago
Smart ... Thanks!
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