Table 112

A Hypothetical Prisoner's Dilemma Faced by Coca-Cola and Pepsi-Cola


Discount Price

Regular Price

Discount Price Regular Price

Nash equilibrium

Set of decision strategies where no player can improve through a unilateral change in strategy

Nash bargaining

Where two competitors haggle over some item of value itself of at least $2,000 in weekly profits. For both Coca-Cola and Pepsi-Cola, the only secure strategy is to offer discount prices, thereby assuring consumers of bargain prices and themselves of modest profits of $4,000 and $2,000 per week, respectively.

Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook

Post a comment