Atlas Construction wants to buy some custom equipment from Vulcan Manufacturing. Atlas maximum willingness to pay for
Question:
a. Use Excel to create a spreadsheet with columns for the price, the benefit to Atlas, the benefit to Vulcan, and the Nash product. Let the price go from 260 to 320 in increments of 10 and find the price that maximizes the Nash product.
b. Now suppose that Atlas maximum willingness to pay is only 300. What is the price that arises from Nash bargaining now? Explain why the price would change in this way.
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Related Book For
Managerial Economics and Strategy
ISBN: 978-0134167879
2nd edition
Authors: Jeffrey M. Perloff, James A. Brander
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