I have been given the following table Can you help with the

I have been given the following table. Can you help with the 1st round of eliminations, the 2nd round of eliminations, and then the final selection for both companies?

Pizza Hut
$1 mill $2 mill $3 mill
$1 mill $60/$55 $70/$60 $20/$65
Papa John\'s $2 mill $80/$40 $40/$55 $60/$50
$3 mill $85/$35 $67/$45 $65/$55

Solution

Papa Jhon selects $1mil

Payoff for Pizza Hut if $1mill is selected - $5

Payoff for Pizza Hut if $2mill is selected - $10

Payoff for Pizza Hut if $3mill is selected - ($45)

Papa Jhon selects $2mil

Payoff for Pizza Hut if $1mill is selected - $40

Payoff for Pizza Hut if $2mill is selected - ($15)

Payoff for Pizza Hut if $3mill is selected - $10

Papa Jhon selects $3mil

Payoff for Pizza Hut if $1mill is selected - $50

Payoff for Pizza Hut if $2mill is selected - $22

Payoff for Pizza Hut if $3mill is selected - $10

In the first round, Papa Jhons would eliminate $3mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($50)

-------------

Pizza Hut selects $1mil

Payoff for Papa Jhon if $1mill is selected - $15

Payoff for Papa Jhon if $2mill is selected - $40

Payoff for Papa Jhon if $3mill is selected - $50

Pizza Hut selects $2mil

Payoff for Papa Jhon if $1mill is selected - $30

Payoff for Papa Jhon if $2mill is selected - ($15)

Payoff for Papa Jhon if $3mill is selected - $22

Pizza Hut selects $3mil

Payoff for Papa Jhon if $1mill is selected - ($45)

Payoff for Papa Jhon if $2mill is selected - $10

Payoff for Papa Jhonif $3mill is selected - $10

In the first round, Pizza Hut would eliminate $1mill because that is the case when Papa Jhon gets the maximum payoff of all the possible cases ($50)

-------------------------------------------------------------------------------

2nd Round

Now that Papa Jhon has eliminated $3 mill, it will now eliminate $2 mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($40)

Also, as Pizza Hut has eliminated $1 mill, it will now eliminate $2 mill because that is the case when Pizza Hut gets the maximum payoff of all the possible cases ($30)

----------------

Final Selection

Papa Jhon will select $1 mill

Pizza Hut will select $3 mill

I have been given the following table. Can you help with the 1st round of eliminations, the 2nd round of eliminations, and then the final selection for both com
I have been given the following table. Can you help with the 1st round of eliminations, the 2nd round of eliminations, and then the final selection for both com

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site