# MBA XXXXXXXXXXOrganizations, Markets, And ManagementTeam Problem WriteupDue Friday, October 28th, by 11:59pm1 AssignmentThe purpose of this assignment is to get your core team interacting with...

I want one problem to be on Game theory and one to be on Monopolist market within the Liberian Market

Answered 1 days AfterNov 03, 2022

## Answer To: MBA XXXXXXXXXXOrganizations, Markets, And ManagementTeam Problem WriteupDue Friday, October...

Komalavalli answered on Nov 04 2022
Product market with game theory:
Let us consider there is two firm in a electronic product market, they are Bosch and Tern who is facing a situation whether to sell a high quali
ty or low quality product with a motive to maximize their revenue. Solution for this problem can be identified through game matrix.
Game matrix between bosch and Tern
Tern
(profits in million)

Bosch
(profits in million)

High quality(20,000 units)
Low Quality(20,000 units)
High quality(10,000 units)
Low quality(10,000 units)

High quality(20,000 units)
(\$40 ,\$25)
(\$40 ,\$50)
(\$40 ,\$20)
(\$40 ,\$0)

Low Quality(20,000 units)
(\$0,\$25)
(\$0,\$50)
(\$0,\$20)
(\$0,\$0)

High quality(10,000 units)
(\$30,\$25)
(\$30,\$50)
(\$30,\$20)
(\$30,\$0)

Low quality(10,000 units)
(\$20,\$25)
(\$20,\$50)
(\$20,\$20)
(\$20,\$0)
When Bosch moves first in the game we will look into column wise payoff. \$40 million is the highest possible profit that Bosch can earn so he chose to supply low quality motors of 20,000 units. By considering bosch action Tern will look into the row wise payoff, the highest possible payoff that the Tern can earn is \$30 million at nash equilibrium point Ten will choose to buy motor of high quality and Bosch will supply low quality motors of 20,000 units.
In one shot simultaneous game both firms decide their outcome at a time, let’s consider that tern and Bosch chose high quality of 10,000 units of motors If we examine the payoff clearly, its revealed that pay off will \$20 million for tern and \$10 million for Bosch, this would result in disequilibrium because there is a possibility for both the firms to deviate from their choice and earn high payoff. At nash equilibrium there is no chance of deviation from the chosen...
SOLUTION.PDF