Top Posters
Since Sunday
g
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
s
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
wrightjb wrightjb
wrote...
Go to Answer
Posts: 419
Rep: 14 0
4 years ago

Figure 14-2



The government of a developing country plans to award two firms, Gigacom and Xenophone, the exclusive rights to share the market for high speed internet service. Gigacom and Xenophone can both provide the service either via television cable lines or via direct subscriber line (DSL). Suppose the government is considering a proposal to delay one firm's entry into the market on the grounds that it wants to prevent "harmful" competition. Figure 14-2 shows the decision tree for this game.



Refer to Figure 14-2. If the government delays Gigacom's entry and Xenophone moves first, is a threat by Gigacom that it will provide DSL service if Xenophone provides cable service a credible threat?



▸

No, because as a second mover, it has no choice but to abide by the choices of the first mover.



▸

Yes, because Gigacom's DSL service will drive Xenophone out of business.



▸

Yes, Xenophone stands to lose $3 million in profit.



▸

No, because Gigacom will lose $4.5 million in profits if it carries out its threat.

Textbook 
InMicro

InMicro


Edition: 1st
Authors:
Read 314 times
6 Replies
Replies
Answer verified by a subject expert
dnlee1dnlee1
wrote...
#1
Posts: 357
Rep: 51 0
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wrightjb Author
wrote...
#2
4 years ago
Helps a lot... Now I'm ready for my quiz
wrote...
#3
4 years ago
thank you
wrote...
#4
4 years ago Edited: 4 years ago, Hgia Hy
.
wrote...
#5
3 years ago
thank you
wrote...
#6
3 years ago
thanksss
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  789 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 520
  
 83
  
 960
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4
Previous poll results: What percentage of nature vs. nurture dictates human intelligence?