...getting their lawns mowed. The last, differentiation by quality, he needs to say how he will also take care of the lawn, not just mow it. Maybe he will fertilize the lawn after it’s freshly cut. People would pay more knowing that their lawn is getting all the care is needs. 2. a. If the EU has one fleet, the US will have a profit of $12,000 instead of $10,00. If they both send two fleets, they still make more if each was to send out one. The US will have higher profits even if the EU sends one or two. However, they both are equal if they send out one or two fleets earning $10,000 and $7,500 respectively. The two fleets is a better idea because they get $15,000 total if they really had just sent one for $10,000. b. If they go by the “tit-for-tat” strategy they will just start out by sending one. They will then wait to see who does what. So they will each just send out one a week and both will have a $10,00 profit. 3. a. HHI= 21.82 + 15.22+132+10.12+9.32+7.42+3.32+2.42+2.42+1.52= =475.24+231.04+169+102.01+86.49+54.76+10.89+5.76+2.25=1,137.44. The US Dept of Justice would be somewhat suspect that the airline industry is an oligopoly because...
Words: 332 - Pages: 2
...1. Is Rand correct in saying that if you accept altruism, then you end up with a lack of self-esteem and a lack of respect for others? I do not believe that Rand is correct in saying this. Accepting altruism does not mean that you have a low self-esteem or a lack of respect for others. I see it as quite the opposite. A person accepting altruism has the utmost respect for other humans. By acting in a altruistic or selfless way, by saving a drowning stranger for example, a person is showing his or her respect for the value of life. Just because we don’t know the person in danger doesn’t mean that they don’t have a family or loved ones that would feel pain if that person were to die (or drown as in my example). 2. Is Rand criticizing ideal or reciprocal altruism? Do you think that she would differentiate between the two? Would you? Rand seems to be criticizing reciprocal altruism. I think that Rand would differentiate between the two but would have more of an understanding or willingness to follow ideal altruism. I would differentiate between the two and I feel that a reciprocal altruism is more on my side of the board. I do not agree with it 100% but I can look back and find instances where I did something only because I would want someone to do it for me in the future. 3. Comment on the following quotation: “The proper method of judging when or whether one should help another person is by reference to one’s own rational self-interest and one’s own hierarchy...
Words: 618 - Pages: 3
... Dr. Fine and Dr. Feelgood are the only two medical doctors offering immediate walk-in medical services in the town of Springfield. That is, they operate in a duopoly. Each doctor can charge either a high price or a low price for a standard medical visit. The accompanying matrix shows their payoffs, in profits per patient (in dollars), for any choice that the two doctors can make. [pic] 1. Suppose the two doctors play a one-shot game—that is, they interact only once and never again. What will be the Nash (non-cooperative) equilibrium in this one-shot game? 2. Now suppose the two doctors play this game twice. Also, suppose each doctor can play one of two strategies: it can play either “always charge the low price” or “tit for tat”— that is, it starts off charging the high price in the first period, and then in the second period it does whatever the other doctor did in the previous period. Write down the payoffs to Dr. Fine from the following four possibilities: a. Dr. Fine plays “always charge the low price” when Dr. Feelgood also plays “always charge the low price.” |FIRST Period |Payoffs |SECOND Period |Payoffs |TOTAL Payoffs | | |Charges | | |Charges | | | | |(high or low) | | |(high or low)...
Words: 660 - Pages: 3
...Questions for Critical Thinking 5 Salvatore’s Chapter 10: a. Discussion Questions: 2 and 8. b. Problems: 1 and 5. 2. a) What are the advantages of the Herfindahl index over concentration ratios in measuring the degree of concentration in an industry? b) What is the disadvantage of both? The Herfindahl index is the sum of the squares of the market shares of each member within the industry and is always less than one. One advantage is that the Herfindahl index gives a look at the larger groups in an industry, while concentration ratio just describes the level of concentration the largest members of a specific industry are presently holding. An advantage is that the larger members will have a greater influence on pricing, marketing and other key indicators that a smaller firm will not. A disadvantage is that the smaller members may be greatly influential, or positioned in a spectacular market, and the Herfindahl index will not be able to describe potential that key player small firms may hold. 8. In what way does OPEC resemble a cartel? How successful is it? OPEC, or The Organization of Petroleum Exporting Countries, which is essentially a cartel of oil exporting partners in order to dominate the market, can manipulate the supply of oil in order to keep prices, and profits, high. The 12 member-nations control nearly 80% of the world’s oil along with 44% of the world’s daily production. They have been accused of keeping oil prices high by producing less...
Words: 1486 - Pages: 6
...and make focus the key to success Use first-mover advantage to build a market where you choose the rules o Follow Through Fast Stay focused and sequence growth to avoid becoming overextended Make maintaining internal alignment an early priority – before the challenges of growth emerge. Use partnerships to leverage resources beyond your immediate control. • Balance o Grip your opponent Design joint ventures and equity deals to co-opt or deflect the competition. Sell your services to opponent in order to stop them from developing competing capabilities on their own. Partner with (potential) opponents to strengthen your position in future competition while taking current or future rivals out of the game. o Avoid Tit for Tat Avoid escalatory moves that can drag you into a war of attrition or a...
Words: 1921 - Pages: 8
...Critical Thinking 5 Assignment NAME GRADE 76 Questions Salvatore 10: Discussion Question 2 (a) What are the advantages of the Herfindahl index over concentration ratios in measuring the degree of concentration in an industry? (b) What is the disadvantage of both? ANSWER: (a) The advantages of the Herfindahl index are: (1) uses information on all the firms in an industry, not just market share of the largest 4,8 or 12. (2) appropriately gives more weight to larger firms than to smaller firms within the industry. (b) Disadvantage to both is that they may overestimate the market power of the largest firms in the industry. Neither model considers contestable markets; this is also a disadvantage of both. Salvatore 10: Discussion Question 8 In what way does OPEC resemble a cartel? How successful is it? ANSWER: OPEC resembles a cartel because it represents a group of producers that exist with the desire to set prices beyond the competitive level. They do this by controlling supply of oil produced by its members. Much like a cartel, OPEC's decisions are dictated in the manner to which they will provide the greatest profit for the cartel members. (b) Not very successful, when OPEC increased prices beyond competitve levels, the market responded by decreasing demand for product, which in turn decreased production and export activity for OPEC members. A number or geo-political factors have both historically and recently created spikes in oil prices. Find the Herfindahl index for an...
Words: 1575 - Pages: 7
...Introduction Nowadays, Game theory plays an important role in modern analysis. This concept can be applied in plenty fields including business, finance, political science, economics and sports. In business, competition is very intensive hence decision makers should analyse and determine their strategy carefully. Furthermore, they have to consider about their rivals strategies available and actions in the game. Once decision makers know all strategies available, they can apply a game concept, and achieve the proper outcome. This essay is divided into two parts, in first part, it will be discussed the general idea of game theory including prisoner’s dilemma which is one of the most known theories. In the second part, the application of game theory will be presented in the example of an oligopoly market. Part one: General discussion of game theory Game Theory...
Words: 2731 - Pages: 11
...These researchers immovably trust that Dante needed just to appropriately apply the pre-built up standard of equity to his understanding of damnation. Another camp, notwithstanding, fights that Dante is endeavoring to rethink totally the well known picture of hellfire. Matthew Pearl, in his article "Dante and Capital punishment," contends that, "contrapasso contrasts radically from the scriptural rule of 'tit for tat,' with which it's occasionally confounded. In Dante's ballad, disciplines must emerge from the wrongdoing itself, not from the harm it has brought on" (passage 7). Pearl contends that Dante is splitting far from the prominent thought that the seriousness of a wrongdoing is controlled by the harm done to society, recommending rather that a transgression is pretty much extreme since it is pretty much hostile to God, not to man (or rather, that every discipline gets from the unpalatability of the transgression itself, as opposed to the affliction of its casualties). There are, obviously, issues with both of these...
Words: 447 - Pages: 2
...Management Science Summary Definitions by Subject Game theory * Nash equilibrium * In game theory, the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy. If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitute a Nash equilibrium. * Stated simply, Amy and Wili are in Nash equilibrium if Amy is making the best decision she can, taking into account Wili's decision, and Wili is making the best decision he can, taking into account Amy's decision. Likewise, a group of players are in Nash equilibrium if each one is making the best decision that he or she can, taking into account the decisions of the others. * Pareto efficiency * Pareto efficiency, or Pareto optimality, is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. The term is named after Vilfredo Pareto (1848–1923), an Italian economist who used the concept in his studies of economic efficiency and income distribution.The concept has applications in academic fields such as economics and engineering. * Given an initial allocation of goods among...
Words: 3775 - Pages: 16
...TOPIC 1: MARKET STRUCTURE AND MARKET POWER 1.1. Competitors Anyone that produces a substitute for a firm’s product. - Cross price elasticity: Measures the substitution degree of a product for another. P.E.>1 – The demand is elastic, a change in price is reflected as an even major change in demand. The extent of the variation is higher as higher is the substitution degree of a product for another. We can say two firms are competing when a price increase by one firm, drives its customers to the other firm. P.E. P (find higher prices). Relevant Geographic Market Imports and Transportation costs. b. Difficulties when defining a market Product differentiation is usually due to small characteristics of the product. e.g. Diet coke belongs to cola market, light cola market and soft drinks market. The idea of competitors today is completely different from the one we had in the past. Sometimes we need to look outside the industry. e.g. go by car with 4 persons vs go alone by train. 1.3.2. Market Structure: # and characteristics of firms in a market. a. Concentration in the market Concentration Index Simple measures to define the market are really useful to take antitrust decisions. It takes into consideration, the number and size of the firms. b. Measuring Market Structure - K-firm concentration ratio Once you have defined the market and relevant players, we define their MS%. Combined share of the k largest firms in the market. Ck = i , si is the MS of firm i and Ck Є...
Words: 6248 - Pages: 25
...American Industry Classification System (NAICS code). The NAICS is a 2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the code is part of a series of progressively narrower categories, and the more digits in the code signify greater classification detail. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry. Section II—Game Theory and Hypothesis 2a In the set-up to Hypothesis 2a, the authors discuss the notion that players learn from past experiences and have a perfect memory. They discuss a “tit-for-tat” strategy that should over time result in an attenuation of the competitive moves between players. This interaction over time should make it easier for a firm to predict the direction and nature of their rival’s next (competitive) move. The authors suggest in Hypothesis 2a that the volatility of the relationship between Coke and Pepsi’s competitive moves...
Words: 1266 - Pages: 6
...The prisoners’ dilemma is the best-known game of strategy in social science. It helps us understand what governs the balance between cooperation and competition in business, in politics, and in social settings. In the traditional version of the game, the police have arrested two suspects and are interrogating them in separate rooms. Each can either confess, thereby implicating the other, or keep silent. No matter what the other suspect does, each can improve his own position by confessing. If the other confesses, then one had better do the same to avoid the especially harsh sentence that awaits a recalcitrant holdout. If the other keeps silent, then one can obtain the favorable treatment accorded a state’s witness by confessing. Thus, confession is the dominant strategy (see game theory) for each. But when both confess, the outcome is worse for both than when both keep silent. The concept of the prisoners’ dilemma was developed by RAND Corporation scientists Merrill Flood and Melvin Dresher and was formalized by Albert W. Tucker, a Princeton mathematician. The prisoners’ dilemma has applications to economics and business. Consider two firms, say Coca-Cola and Pepsi, selling similar products. Each must decide on a pricing strategy. They best exploit their joint market power when both charge a high price; each makes a profit of ten million dollars per month. If one sets a competitive low price, it wins a lot of customers away from the rival. Suppose its profit rises to twelve...
Words: 921 - Pages: 4
...Bởi vì em độc thân nên chẳng mấy khi em bước chân vào những gian hàng dành cho nam giới. Những nơi em lui tới khi mua sắm, nếu có bán đồ nam, em cũng chẳng buồn nhìn ngắm. Thật tiết kiệm thời gian... và tất nhiên... cả tiền bạc nữa :"> :"> :"> Bởi vì em độc thân nên em toàn đi ăn hàng. Chẳng việc gì phải nấu nướng cho gian nan để rồi một mình tự ăn, tự rửa. Bởi vì em độc thân, em sẽ thoải mái nhìn ngắm những cặp tình nhân đang đong đưa hờn dỗi, rồi cười *** nẻ khi thấy họ có những hành động thật… dở hơi nơi công cộng. Bởi vì em độc thân, em sống một mình, nên cái gì em cũng biết làm, từ sửa đường ống nước ( thực ra chính xác là "gọi thợ sửa đường ống nước" ) thay vì mè nheo, õng ẹo, gọi "anh ơi" mỗi khi khó khăn tới. Thậm chí em còn có thể tự treo khung ảnh ở tít trên cao, ngay cả khi em lùn tịt, tự khuân vác và bê đồ… điều này rất khó nhưng độc thân lâu rồi thì nó cũng đơn giản thôi. Bởi vì em độc thân nên buổi tối, trước khi đi ngủ, thay vì thủ thỉ "anh yêu, ngủ ngon", em chỉ việc lăn bon bon trên giường như heo con rồi ngủ ngon mà không cần ai chúc và chẳng phải chúc ai… Bởi vì em độc thân nên buổi sáng ngủ dậy điểm đến ngay lập tức của em là bên chiếc bàn chải đánh răng, chứ chẳng phải níu kéo ánh mắt trên giường, hay tâm trí treo ngược bên điện thoại để í ** với ai đó, điều gì đấy. Bởi vì em độc thân nên em sẽ chẳng cần quan tâm đến những ngày lễ ngớ ngẩn… Như Valentine chẳng hạn… quà cáp thật mệt người! Bởi vì em độc thân nên 24 tiếng trong ngày của em, hoàn toàn...
Words: 344 - Pages: 2
... 10 giây đã hết , các ứng viên đã có câu trả lời … !!! Tèn ten …!!! Vâng , như vậy là 10 người đã trả lời sai hết đáp án . Và đáp án đúng phải là : A) 1 B) 2 C) 3 D) 4 Vì không có ứng viên nào trả lời đúng, mà tôi thì không thể tự hỏi tự trả lời được nên tôi xin mời người trả lời sai chậm nhất là anh Lò Lỉu Phò , vâng anh Phò xuống với chúng ta từ trển , anh đã có câu trả lời sai ở giây cuối cùng , xin mời anh . - Xin chào khán giả truyền hình, xin chào khán giả giường quay và xin chào anh MC …tên em là Phò . Đến với chương trình , em có 1 mục đích là muốn khẳng định cho khán giả cả nước biết được rằng , em …em là người có học thức cao , có tầm am hiểu kiến thức đáng nể , là người mà tất cả nước tí nữa thôi sẽ phải trầm trồ ca ngợi , vâng , em xin hết . - Ừ , tôi nhận thấy bạn là người rất tự tin , vậy bạn đến đây cùng người trợ giúp tinh thần của mình là ai ? - Vâng , cám ơn anh , nhưng vì em giỏi thật , nên việc giấu giỏi là điều không cần thiết , em nghĩ thế … Em đến đây 1 mình , em nghĩ việc mang 120 triệu kia về thì không cần thiết phải 2 người mới khiêng được . - Rất mong những gì bạn nói sẽ đột nhiên trở thành hiện thực , vâng , bạn có 3...
Words: 1381 - Pages: 6
...RICHARD DAWKINS-The Selfish Gene. Ebook v1.0. 'Who should read this book? Everyone interested in the universe and their place in it.' Jeffrey R. Baylis, Animal Behaviour Our genes made us. We animals exist for their preservation and are nothing more than their throwaway survival machines. The world of the selfish gene is one of savage competition, ruthless exploitation, and deceit. But what of the acts of apparent altruism found in nature-the bees who commit suicide when they sting to protect the hive, or the birds who risk their lives to warn the flock of an approaching hawk? Do they contravene the fundamental law of gene selfishness? By no means: Dawkins shows that the selfish gene is also the subtle gene. And he holds out the hope that our species-alone on earth-has the power to rebel against the designs of the selfish gene. This book is a call to arms. It is both manual and manifesto, and it grips like a thriller. The Selfish Gene, Richard Dawkins's brilliant first book and still his most famous, is an international bestseller in thirteen languages. For this new edition there are two major new chapters. 'learned, witty, and very well written...exhilaratingly good.' Sir Peter Medawar, Spectator Richard Dawkins is a Lecturer in Zoology at Oxford University and a Fellow of Mew College, and the author of The Blind Watchmaker. Preface to 1976 edition This book should be read almost as though it were science fiction. It is designed to appeal to the imagination. But it is not science...
Words: 118698 - Pages: 475