This Case is about COMPETITIVE STRATEGY, CUSTOMERS, ECONOMICS, PRICING
PUBLICATION DATE: February 07, 2011 PRODUCT #: W88C82-PDF-ENG
Economical game theory may be hard and boring notion, but it does not have to be. This exercise enables students to learn about game theory via an amusing medium – video games.
After regarding a pricing war between Sony, Microsoft and two video game giants, pupils are requested to compute pricing strategies based off game theory forecasts. Pupils must utilize a 2 by 2 simultaneous one-shot game (such as the Prisoner’s Dilemma framework) to discover if one or both firms will cut prices.