Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the… 1 answer below »

Given the following payoff matrix, (a) indicate the best strategy for each firm. (b) Why is the entry-deterrent threat by firm A to lower the price not credible to firm B? (c) What could firm A do to make its threat credible without building excess capacity? The strategies for firm A are low price and high price and the strategies for firm B are enter and don’t enter.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *