Fabienne Keller
Karten 13 Karten
Lernende 8 Lernende
Sprache English
Stufe Grundschule
Erstellt / Aktualisiert 11.04.2013 / 11.12.2020
Lizenzierung Kein Urheberrechtsschutz (CC0)
0 Exakte Antworten 13 Text Antworten 0 Multiple Choice Antworten
Fenster schliessen

Which two ways to move second are there?

1.) Imitate as soon as the other has revealed his approach (ex. sailboat racing)

2.) wait longer until the success or the failure of the approach is known (ex. computer.. )

--> second strategy is more advantageous in business and not in sports, because the competition is usually not "winner takes all".

Fenster schliessen

On the whole, cooperation is more difficult to implement when..... (3)

- the number of players is high

- the deviations are difficult to observe

- the last period of interaction is known

Fenster schliessen

What's the Selten's paradox (1978)?

a price war following an entry is not credible

--> backward induction prooves that the punishment is not credible at any period.

Fenster schliessen

Cooperation success relies on:


- detecting any deviation

- if possible, limiting the gain of cheating

- guarantee the punishment

Fenster schliessen

What's scorched earth policy?

Scorched earth policy refers to the practice of destroying anything that might be useful to the enemy:

food, shelter, industrial resources,... etc. 

--> such strategy offers some advantages when the enemy is far from home; but it has to be used as a last resort!!

Fenster schliessen

Which 3 principles exist which establish ones credibility?

1.) modifying the payoffs of the game 

--> to change payoffs so that it is in your own interest to behave as it has been announced

2.) modifying the actions or outcomes of the game, in order to restrict the possibilities for not honoring one's commitment

3.) using the other players to help oneself to honour our commitment

Fenster schliessen

Which 8 methods for establishing ones credibility exist?

1.) Building your own reputation

2.) Signing a contract (1+2 --> 1. principle)

3.) Cutting any communication

4.) Burning the bridges behind

5.) Leaving the outcome beyond your control (3,4+5--> 2.principle)

6.) moving by small steps

7.) Working inteam

8.) Giving a mandate to a third party

Fenster schliessen

Is having a direct competitor necessary for a firm to be in a competitive position?

No, because a firm may be in a competitive position with itself. A new computer, for example, may compete with an old one.

Fenster schliessen

What are the special features of the costs for producing high-tech items?

High-tech items are subject for very high research & development costs. However the marginal costs are quite low.

Fenster schliessen

When IBM sells a computer, is it the firm's interest to decrease the charged price trough time?

Yes, because once the demand is served according to the original price, IBM has an incentive to decrease the price to serve customers with a lower reservation price.

Then repeating the decrease again & again until the prize equalizes the marginal cost.

Fenster schliessen

Would a price decrease modify some customer's behavior?

Yes, some customers with a reservation price above the original may still prefer to wait a price decrease. (because they know it will decrease)

Fenster schliessen

When IBM rents a computer, is it the firm's interest to decrease the price that is charged through time?

When the computers are rented, any price decrease cost a higher amount because the decrease applies to all computers, not only the ones in the IBM stocks.

Fenster schliessen

What is the advantage for renting rather than selling?

Renting rather than selling allows IBM to credibly commit to not decrease the price. Customers have no more incentive to wait any price decrease.