Game theory problem, nash equilibria.

Locate Group Problem G15-1: Strategic Game at the end of Chapter 15 in Managerial Economics: A Problem Solving Approach.

Spend 2 or 3 hours observing the organization. During the observation, identify internal and external interactions of the organization. You can talk to stakeholders who might have information relating to external interactions in order to gather necessary information. Use the observation information to complete all parts of the question presented in the problem. Your response should be 500-750 words. Please include the diagram required in the problem.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

Group Problem

G15-1 Strategic Game

Describe some interaction your company has with

another entity (firms producing complementary or

substitute products, upstream suppliers, or downstream

customers), or between internal divisions

within your firm that can be described as a sequential

or simultaneous game. Diagram the strategies,

players, and compute payoffs as best you can. Compute

the Nash equilibria. What can you do to

change the rules of the game to your advantage?

Compute the profit consequences of your advice.

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