What does the sequential move game look like for two


Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers. Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices. Suppose that each of two divisions can purchase hairnets for $8 independently. If they all purchase through the central system, hairnets cost $6. But if one division uses the system and the other purchases independently, the cost to the first is $9 while the cost to the second is $7. What does the sequential move game look like for two divisions where division 1 goes first? What is the equilibrium?

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Business Management: What does the sequential move game look like for two
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