Refer to Figure 14-4. What is the equilibrium outcome in this game and is this a subgame-perfect equilibrium?
A) Either offer of 30 or 40 per copy of the software package is accepted and these two equilibria are subgame-perfect equilibria.
B) In the equilibrium, neither offer is accepted as Rainbow Writer holds out for a better deal. The two rejection outcomes are subgame-perfect equilibria.
C) Either offer of 30 or 40 per copy of the software package is accepted but these are not are subgame-perfect equilibria.
D) In the equilibrium, Odeon offers 40 per copy of the software package and is accepted but this is not a subgame-perfect equilibrium.
Question 2
Recent research has shown that the first firm to enter a market often does not have a long-term advantage over later entrants into the market. An example that has been used to illustrate this is
A) Xerox, which became a generic term for making photocopies.
B) McDonald's entry into the high-end coffee market.
C) the introduction of the first ballpoint pen in 1945.
D) Abercrombie and Fitch, which was the first clothing company to market to young men.
Game logic
Othmer’s Equilibrium Still Schematic Diagram
Write equilibrium constant expressions for the following reactions in terms of concentration:
The outcome of a mating between individuals heterozygous at two genes determining their ABO blood ty
The outcome of crosses involving the three types of petite mutations
The Hardy–Weinberg Equilibrium