The tacit collusion case to be discussed involves the illegal collusion and setting of fuel surcharges to commercial and cargo transatlantic fares between British Airways (BA) and Virgin Atlantic Airways (Virgin). The factors which contributed to its success will be discussed‚ as well as why‚ and its implications‚ of becoming public. To begin with‚ it would be beneficial to define both collusive behaviour and the nature of the competition involved in the aviation industry. Collusion is the act of
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Blackrock 2013 Table of Contents Abstract………………………………………………………………………………...3 Introduction…………………………………………………………………………….3 Part I: Real Options and Games………………….………………….…………………4 * Competition vs. strategic alliances in consumer electronics……………………………...5 * Case of European airport expansion………………….………………….…………...5 Part II: The Real Effects of Corporate Cash Holdings………………….……………...6 Part
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players games. ı Copyright © 2006 Juan Pablo Torres-Mart´nez. This is an open access article distributed under the Creative Commons Attribution License‚ which permits unrestricted use‚ distribution‚ and reproduction in any medium‚ provided the original work is properly cited. 1. Introduction In game theory‚ the existence of equilibrium was uniformly obtained by the application of a fixed point theorem. In fact‚ Nash [3‚ 4] shows the existence of equilibria for noncooperative static games as a direct
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Prisoners’ Dilemma by Avinash Dixit and Barry Nalebuff About the Author T he 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. Related CEE Articles: Behavioral Economics Cartels Competition Game Theory In the traditional version of the game‚ the police have arrested two suspects and are interrogating them in separate rooms. Each can either confess
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A Beautiful Mind Pricillia F.Lumantoro Principle of Economy In this movie‚ the theory that I could notice is about equilibrium theory. It is a solution concept of a game involving two or more players and each player is assumed to know the equilibrium strategies of the other players and no player has anything to gain by changing only his own strategy. The theory is clearly seen in a scene when there are four men in a bar including Nash and a blond girl walks in with four other girls. Russel suggest
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Purpose of Course This course is designed to help students understand consumer and firm behavior in decision making and the market process utilizing economic theories and techniques. Students should expect rigorous training on supply and demand analysis‚ regression analysis‚ consumer behavior‚ production theory‚ market structure‚ game theory and pricing strategies. We will focus on the application of economic tools to the day-to-day decision making for managers at all organizational levels. Text Michael
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entrant abstains from entering unprofitably. Fig.3 – Game theory analysis of strategic entry deterrence – entrant
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2006). They have a combined market share of over 73.6% of the UK grocery market. (www.wikipedia.org “List of supermarket chains in the UK”). What is a ‘Zero-Sum’ Game? American born ‚ Sociologist‚ Dennis Wrong (1997) stated that the power held by the supermarkets is a ‘zero-sum’ game. This means that they are in a situation whereby one party’s loss is another party’s gain and vice versa. If you subtract the total losses from the total
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The purpose of this paper is to contribute to the understanding of the determinants of cooperative behaviour. More specifically‚ it is argued that individuals differ as to their inclination to cooperate. 2. The well known prisoner’s dilemma game has become the classic economic example to demonstrate non-cooperative behaviour: Two contestants face a dilemma" in which‚ independent of the other’s action‚ each player is better o_ by defection than by cooperation. But‚ the outcome obtained when
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He has greatly impacted today’s society with his works in game theory‚ differential geometry‚ and partial differential equations. His theories are used in many aspects of our lives today such as in economics‚ computing‚ evolutionary biology‚ artificial intelligence‚ accounting‚ politics and in military theory. Within his lifetime Nash has received several prestigious awards. In 1978 he was awarded the John Von Neumann Theory Prize. In 1994 he and his coworkers Reinhard Selton and John Harsanyi were awarded the Nobel
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