List of
games in Chapter 7 The Strategic form Using Comlabgames |
|
Game
title (right click on the game to download it) |
Short
description of the experiment |
Game 7.1: Expansion game |
A new market has
just opened up in an industry with only two firms and no prospects of entry.
The size and market value of one firm is currently twice the other. Both
firms have the opportunity to increase their respective capacities to serve
this new market, or ignore it, but each makes its own decision without
knowing what branch the other firm has chosen. If the larger firm expands and
the smaller retains its existing capacity, the value of the larger firm will
increase by 25 percent, some of its increase in value at the expense of the
smaller firm which would decline in value by 30 percent, because of greater
scope for scale economies in distribution. On the other hand if the smaller
firm seizes this market opportunity and the larger firm ignores it, the value
for the smaller firm will increase by 60 percent while the value for the
larger one will decline by 25 percent. |
Game 7.4: Strategic form of the simultaneous
move expansion game |
|
Game 7.5: Strategic form of the expansion game where large producer moves first |