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mpaign the other firm undertakes an extensive promotional campaign, then the firm that adopts the extensive campaign will increase its market share and earn a profit of $9.0 million, whereas the firm that chooses the limited campaign will earn a profit of only $4 millon.
a. Develop a payoff matrix for this decision-making problem.
b. In the absence of a binding and enforceable agreement, determine the dominant adverstising strategy and minium payoff os Hitachi.
c. Determine the dominant advertising strategy and minum payoff for Toshiba,
d. Explain why the firm may choose not to play their dominant strategies whenever this game is repeated over multiple decision-making periods.

 

Question 6,

Phillips Industries manufactures a certain product that can be sold directly to retail outlets or to the Superior Company for further processing and eventual sale as a completely different product. The demand function for each of these markets is
    Retail Outlet: P1 = 60 – 2Q1
   Superior Company:  P2 = 40 – Q2
Where P1 and P2 are the prices changed and Q1 and Q2 are the quantities sold in the respective markets. Phillips’ total cost function for the manufacture of this product is
   TC= 10 + 8 (Q1 + Q2)
a. Determine Phillips’ total profit function.
b. What are the profit-maximizing price and output levels for the product in the two markets?
c. At these leves of output, caculate the marginal revenue in each market.
d. What are Phillips’ total profits if the firm is effectively able to charge different prices in the two markets?
e. Calculate the profit-maximizing level of price and output if Phillips is required to charge the same price per unit in each market. What are Phillips’ profits under this condition?

Question 7,
BORDERS BOOKS AND AMAZON.COM DECIDE TO DO BUSINESS TOGETHER

Borders Books, the leading chain of bookshop retailers, entered into an agreement with Amazon.com, the online retailter, to fulfill Internet orders the Border.com Web site. Using table 1 and the following questions, what organizational form would you predict for this business relationship?
 

Table 1 EFFICIENT ORGANIZATIONAL FORM DEPENDS ON ASSET CHARACTERISTICS
 FULLY REDELOYABLE DURABLE ASSETS NON-REDPLOYABLE RELIANT ASSETS
Not dependent on unique complements Spot market recontracting Long-term supply contracts + risk management
One-way dependent assets Relational contracts (alliances) Vertical integration
Bilateral dependent assets Relational contracts (joint ventures) Fixed profit-sharing contracts

Questions
1. Are Amazon.com’s warehouses, Web pages, and one-click sales methods fully re-deloyable to other products? If so, name a few such products. If not, why not?
2. Are Borders’ fixed assets fully redeployable? If so, suggest how, if not, why not
3. Is Borders dependent on Amazon as a unique complement? That is, is Amazon.com the only potential company that could process Internet-based orders for Borders?
4. Is Amazon dependent on Borders for referrals, or does it have its own Internet based order flow?
5. Is your answer consistent with the multiyear fee-for-service contract between Borders and Amazon.com whereby Amazon processes the order, ships the book, records the sales, an本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。