1. JVT and MVC are major television networks competing for viewer ratings in the prime time slot between 7:00 - 8:00 P.M. and 8:00 - 9:00 P.M. slots on a given weeknight. Each has two shows to fill this time period and is juggling its lineup. Each can choose to put its "bigger" show first or to place it second in the 8:00 - 9:00 P.M. slot. The combination of decisions leads to the following "ratings points" results: MVC First slot Second slot First slot 20, 20 18, 18 JVT Second slot 15, 15 30, 10

1. JVT and MVC are major television networks competing for viewer ratings in the prime time slot between 7:00 - 8:00 P.M. and 8:00 - 9:00 P.M. slots on a given weeknight. Each has two shows to fill this time period and is juggling its lineup. Each can choose to put its "bigger" show first or to place it second in the 8:00 - 9:00 P.M. slot. The combination of decisions leads to the following "ratings points" results: MVC First slot Second slot First slot 20, 20 18, 18 JVT Second slot 15, 15 30, 10

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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1. JVT and MVC are major television networks competing for viewer ratings in the prime time slot between 7:00 - 8:00 P.M. and 8:00 - 9:00 P.M. slots on a given weeknight. Each has two shows to fill this time period and is juggling its lineup. Each can choose to put its “bigger" show first or to place it second in the 8:00 - 9:00 P.M. slot. The combination of decisions leads to the following “ratings points" results: MVC First slot Second slot First slot 20, 20 18, 18 JVT Second slot 15, 15 30, 10
5. Two major networks are competing for viewer ratings in the 8:00-9:00 P.M. and the 9:00-10:00 P.M. slots on a given night. Each has two shows to fill these time periods. Each can choose whether to put its more popular show in the early or the 9:00-10:00 P.M. slot. The combination of decisions leads to the following results for "rating points." CBS Early Slot Late Slot NBC Early Slot 20, 30 18, 18 Late Slot 15, 15 30, 10 (A) Find the Nash equilibria for this game, assuming that both networks make their decisions at the same time. (B) What will be the equilibrium if NBC makes it selection first? If CBS makes it selection first?
Please answer # 5 only. The profits of the four major networks (CBS, NBC, ABC and Fox) depend significantly on the ratings of its prime time shows. The higher the ratings, the higher the price the network can charge for advertising and the higher the profits of the network. To keep things simple, we will focus on two networks, CBS and NBC, and two of the prime time spots, 8-9PM and 9-10PM. Each network needs to decide which time slot to place its hit show, 8-9PM or 9-10PM. The other time slot will be filled by a run of the mill show. The following payoff matrix shows the total number of viewers (in millions) if each network places its hit show in each of the time slots: CBS 8-9PM time slot 9-10PM time slot NBC 8-9PM time slot 100, 110 85, 120 9-10PM time slot 120, 40 70, 90 If you are the program manager for CBS, what time slot would you place your hit TV show (assuming that your goal is to maximize the number of viewers)? Please explain…
Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of market share in 2013. Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021). Question 1. Back in 2013, which market structure would best describe the pay-for-viewing TV industry in Australia? Clearly explain why. Question 2.…
Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of market share in 2013. Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021). Question: Question 5. How have the following changed for Foxtel between 2013 and 2021? Quantity Price Economic Profit Clearly explain.…
Figure 14-2 Xenophone (X Decleion Offer Cable or DSL a service Cable OSL Gigom (0) Decision 图 Offer Cable or DSL service Gigsom (G) Decon Ofer Cable or D Went service Cable DS Cable DSL X 80 million G: 19 milion X: 54 milion G: $45 milion x 55 million G: 16.5 milion X: 50 milion $7 The government of a developing country plans to award two firms, Gigacom and Xenophone, the exclusive rights to share the market for high speed internet service. Gigacom and Xenophone can both provide the service either via television cable lines or via direct subscriber line (DSL). Suppose the government is considering a proposal to delay one firm's entry into the market on the grounds that it wants to prevent "harmful" competition. Figure 14-2 shows the decision tree for this game. Refer to Figure 14-2. Now suppose that the government delays Xenophone's entry and Gigacom moves first, what is the likely outcome in the market? Both offer internet service via cable line: Xenophone earns a profit of $6 million…
Two firms engage in Cournot competition in the Everlasting Gobstopper industry. The price elasticity of demand is -2. Firm 1 has a constant marginal cost of $365.00 per unit, and firm 2 has a constant marginal cost of $602.25 per unit. If the two firms are currently in equilibrium, what is firm 2's share of the market? Enter your answer as a decimal, rounded to two places if necessary.
Two firms engage in Cournot competition in the Everlasting Gobstopper industry. The price elasticity of demand is-2. Firm 1 has aconstant marginal cost of $110.00 per unit, and firm 2 has a constant marginal cost of $181.50 per unit. If the two firms are currently inequilibrium, what is firm 2's share of the market? Enter your answer as a decimal, rounded to two places if necessary.______ Please show all steps
Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near-total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of the market share in 2013. Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of the content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021). Question 1. Draw a firm diagram to illustrate Foxtel’s business back in 2013. Clearly explain how Foxtel made decisions about setting its…
Table 2 below represents the payoff matrix for two firms, X and Y, who compete with each other. Payoffs are in millions of pounds (£) profit. Each firm may choose one of two strategies i.e. set a high price for its output or set a low price for its output. Neither firm knows what strategy the other will adopt. Table 2 11. Firm Y High Price Low Price Firm X High Price X-£7mn, Y-£7mn X=£1mn, Y=£15mn Low Price X-£15mn, Y-£1mn X=£4mn, Y=£4mn In the absence of collusion, which combination of strategies is most likely to occur? a) X sets a low price and Y sets a low price. b) X sets a high price and Y sets a low price. c) X sets a low price and Y sets a high price. d) X sets a high price and Y sets a high price.
Efforts of oligopolistic firms to impact the demand for their product (other than price) are called non-price determinants of demand. Detail five (5) non-price determinants of demand, and with reference to the price elasticity of demand, explain those non-price determinants.
This case study focuses on the pay-for-viewing TV (Pay TV in short) industry in Australia. Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of market share in 2013. Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021). Required: Question 1. Back in 2013, which market…