Question

1.

Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it enters the market, Mattie’s can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.​

​ If Mattie wants to discourage Irene from entering the market, what strategy should she follow?

	a.	​Threaten to always accommodate
	b.	​Always accommodate
	c.	​Threaten to always fight
	d.	​All of the above

2.

If a union threatens to strike during a peak demand period, it is more likely to

	a.	​Have its conditions accepted
	b.	​Have its conditions rejected
	c.	​Get laughed at
	d.	​All of the above

3.

Consider a sequential game between a shopkeeper and a haggling customer. The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party gets anything. Ignore costs and assume the customer values the item at $60.

​ If the shopkeeper goes first and quotes a high price, what is the best response of the customer?

	a.	​Walk away from the deal
	b.	​Swear off shopping forever
	c.	​Yell at the store owner
	d.	​Accept the high price

4.

In sequential games,

	a.	​Players take turns and observe their rivals choices before they make their choices
	b.	​Players take turns but don’t observe their rivals choices before they make their choices
	c.	​Players move at the same time
	d.	​None of the above

Answer 1

1)

a):Threaten to always accommodate

As we know accomodation is the process in which we modify existing knowledge in such a way to include new knowledge or information.

So we can say that Mattie wil not try to accommodate irrne but will definitely try "Threaten to always accommodate" irene. Accomodate means to give a new information about something for example a child asks mother in a train station what is this..mother told this is train and it runs on platform like the busses runs on roads.

2:)

b) Have its conditions rejected

Because if the people or any business man will accept the conditions the union will try to threaten agsin and again and will implement and imposed the strict rules and regulations day by day.

3:

a: walk away from the deal

Because customer will not prefer to bargain or cry cause he knows it is very high price. If the shop keeper lessen 30 to 40 percent after all is costly as every layman think.

4)

a: Players take turns and observe their rivals choices before they make their choices

the sequential game is: in which or where 1 player chooses their actions or tasks before the other player's choose. May be and particularly the other player may be have some information of thefirst players choice. Thats is why frist player always try to get benifit and get the good choice before other players.

Hope you got your answer if you need some more information about your question feel free to ask...thank you