Committing large investments to a single project is always risky, and it becomes even riskier when...

Committing large investments to a single project is always risky, and it becomes even riskier when a competitor is set to do the same thing and the market is not ready to sustain two rival products. In the game called "The Innovator's Dilemma" (or "The Developer's Dilemma"), there are two identical firms, A and B, and each can make one of two choices, to invest in the development of a new product or not to invest. If only one of the players chooses to invest, she will reap the profits from future market dominance, and the other one will get nothing. If both players choose to invest, they will have to compete fiercely and (both) will lose money. If neither invests, they both lose the profit opportunity and earn nothing. Write down a payoff matrix for this game (feel free to assume whatever numbers describe the scenario described above). Find the Nash equilibrium (or equilibriums) for this game. If there is more than one equilibrium, what could a player do to get the best outcome for him/herself? Can you give a real life example of this type of game? Can this game explain why some innovations (such as alternative energy sources) are delayed? Why or why not?

Expert Solution

In the market ,two rival products doesn't easily compete.Both firms had full of planning and strategies but it is very riskier .Through the payoff matrix of game theory the basic principles are used to compete in market.

Rahul Sunny answered 8 months ago

Often times when a company becomes large enough, it will sell off a minority portion of...

Often times when a company becomes large enough, it will sell off a minority portion of their ownership to the public as shares to gain capital. This capital is then reinvested into the company to assist in new projects or expansion in general. For this week's discussion assignment, research how a company's stock is initially appraised when they decide to go public, how it is determined the number of shares are to be distributed and the advantages/disadvantages of common and...

Why does this code not work even when typing in the correct product code? It always...

Why does this code not work even when typing in the correct product code? It always gives me the error message even though im typing one of the 3 correct product codes. String[] product_code= new String[3]; String[] product_name= new String[3]; // String[] product_description = new String[3]; int[] quantity = new int[3]; double[] price = new double[3]; double[] itemTotal = new double[3]; double subTotal = 0, salesTax, total; //getting all the needed inputs for(int i = 0; i < 3;...

What is the case when a single price becomes a price discrimination strategy? Describe your own...

What is the case when a single price becomes a price discrimination strategy? Describe your own experience.

Explain why market prices will always converge to their fundamental value even when we disregard the...

Explain why market prices will always converge to their fundamental value even when we disregard the efficient market hypothesis.

the project will cost $45,000 to develop. When the system becomes operational, after a one-year development...

the project will cost $45,000 to develop. When the system becomes operational, after a one-year development period, operational costs will be $9,000 during each year of the system's five year useful life. The system will produce benefits of $30,000 in the first year of operation, and this figure will increase by a compound 10% each year. Answer the following questions based on the background information provided and what you have learned from the toolkit: What is the NPV for this...

hello I need a good report with 6-7 pages about (Break-even Analysis for a single project)...

hello I need a good report with 6-7 pages about (Break-even Analysis for a single project) its better for me if its not handwritting cause i need it online on word .. anyway thanks ❤️

Cancer cells, even when sufficient oxygen is available, produce large amounts of lactate. It has been...

Cancer cells, even when sufficient oxygen is available, produce large amounts of lactate. It has been observed that the concentration of fructose-2,6-bisphoshate is much higher in cancer cells than in normal cells. Why would this result in anaerobic metabolism being favored, even when oxygen is available ?

19. When using IRR to evaluate a single project which of the following statements is true?...

19. When using IRR to evaluate a single project which of the following statements is true? Group of answer choices a. IRR fails to consider the time value of money. b. IRR fails to consider cash flows beyond the cut-off point. c. IRR may reject the project when NPV says accept. d. There may be multiple IRRs for non-conventional cash flows.

When would you use single product or multiproduct break-even analysis. Illustrate with examples. Subject: Managerial Accounting...

When would you use single product or multiproduct break-even analysis. Illustrate with examples. Subject: Managerial Accounting Please write more than 350 words.

Question