Managerial Economics and Decision-Making Assignment
DISCUSS - Strategic Decision Making
Explain the relationship between strategic moves, commitment and credibility. From this relationship perspective, how would you characterize the bargaining between a customer and a used car dealer? In other words, is the bargaining between a customer and a used car dealer a strategic or nonstrategic interaction? What will be the strategic moves of each of them? How each of them can express their commitment? How each of them can evaluate each other credibility?
Discuss some interaction (any company of your choice) has with another entity (firms producing complementary or substitute products, upstream suppliers, or downstream customers), or between internal divisions within the firm that can be described as a sequential or simultaneous game.
Comment on what you find most interesting and/or useful to business and life in general.
Textbook: Froeb, L., & McCann, B. (2013). Managerial Economics: A Problem-Solving Approach, 4th edition. Cengage.
Chapter 15 - Strategic Games
Chapter 16 - Bargaining
Note - 2 paragraph discussion with reference.