Two companies start out interdependent, but they merge. When…

Questions

Twо cоmpаnies stаrt оut interdependent, but they merge. When Betа Company acts, it affects Gamma Industries. Beta has two actions, A and B. Gamma has two actions D and E. I'll present the payoffs:                  Beta     A B Gamma D $27/ $8 $20 / $15 E $18/ $19 $11/ $18 If Beta chooses A and Gamma chooses D then Beta gets $8 and Gamma gets $27. If Beta chooses A and Gamma chooses E then Beta gets $19 and Gamma gets $18. The other cells can be interpreted similarly. The payoffs are common knowledge and Beta and Gamma are rational in the sense of being good predictors of each other's actions.  Beta and Gamma are maximize their own payoffs. Once firms merge and are subject to a single decision maker, what actions will they take?

Twо cоmpаnies stаrt оut interdependent, but they merge. When Betа Company acts, it affects Gamma Industries. Beta has two actions, A and B. Gamma has two actions D and E. I'll present the payoffs:                  Beta     A B Gamma D $27/ $8 $20 / $15 E $18/ $19 $11/ $18 If Beta chooses A and Gamma chooses D then Beta gets $8 and Gamma gets $27. If Beta chooses A and Gamma chooses E then Beta gets $19 and Gamma gets $18. The other cells can be interpreted similarly. The payoffs are common knowledge and Beta and Gamma are rational in the sense of being good predictors of each other's actions.  Beta and Gamma are maximize their own payoffs. Once firms merge and are subject to a single decision maker, what actions will they take?

Twо cоmpаnies stаrt оut interdependent, but they merge. When Betа Company acts, it affects Gamma Industries. Beta has two actions, A and B. Gamma has two actions D and E. I'll present the payoffs:                  Beta     A B Gamma D $27/ $8 $20 / $15 E $18/ $19 $11/ $18 If Beta chooses A and Gamma chooses D then Beta gets $8 and Gamma gets $27. If Beta chooses A and Gamma chooses E then Beta gets $19 and Gamma gets $18. The other cells can be interpreted similarly. The payoffs are common knowledge and Beta and Gamma are rational in the sense of being good predictors of each other's actions.  Beta and Gamma are maximize their own payoffs. Once firms merge and are subject to a single decision maker, what actions will they take?

Twо cоmpаnies stаrt оut interdependent, but they merge. When Betа Company acts, it affects Gamma Industries. Beta has two actions, A and B. Gamma has two actions D and E. I'll present the payoffs:                  Beta     A B Gamma D $27/ $8 $20 / $15 E $18/ $19 $11/ $18 If Beta chooses A and Gamma chooses D then Beta gets $8 and Gamma gets $27. If Beta chooses A and Gamma chooses E then Beta gets $19 and Gamma gets $18. The other cells can be interpreted similarly. The payoffs are common knowledge and Beta and Gamma are rational in the sense of being good predictors of each other's actions.  Beta and Gamma are maximize their own payoffs. Once firms merge and are subject to a single decision maker, what actions will they take?

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