Deconstructing a Business Game
Two coffee shops, 'The Daily Grind' and 'Espresso Yourself', are located across the street from each other. They are simultaneously deciding whether to set their price for a latte at 'High' (£3.50) or 'Low' (£2.50).
If both choose 'High', they each make a profit of £500 per day. If both choose 'Low', they each make £300 per day. If one chooses 'High' and the other chooses 'Low', the 'Low' price shop makes £600, and the 'High' price shop makes only £100.
Suppose 'The Daily Grind' chooses a 'Low' price, and 'Espresso Yourself' chooses a 'High' price. For 'The Daily Grind' only, identify its chosen strategy, the specific outcome of the game, and its resulting payoff.
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Economics
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Application in Bloom's Taxonomy
Cognitive Psychology
Psychology
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Deconstructing a Business Game
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