Two oil companies, India Oil Co. and Caltex operating in a city, are trying to increase...
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Two oil companies, India Oil Co. and Caltex operating in a city, are trying to increase their market at the expense of the other. The Indian Oil Co. is considering possibilities of decreasing price, giving free soft drinks on Rs 40 purchases of oil, or giving away a drinking glass with each 40-litre purchase. Obviously, Caltex cannot ignore this and comes out with its own strategies to increase its share in the market. The pay-off matrix from the viewpoints of India Oil Co. is given in the table below. Determine the optimum strategies for the two oil companies. (14) CALTEX Free soft drinks on Rs 40 purchase INDIAN OIL CO. Decrease price Free soft drinks on Rs 40 purchase Free drinking glass on 40-litres or Decrease price 4 3 -3 1 1 Free drinking glass on 40-litres or more. -3 6 -2 Two oil companies, India Oil Co. and Caltex operating in a city, are trying to increase their market at the expense of the other. The Indian Oil Co. is considering possibilities of decreasing price, giving free soft drinks on Rs 40 purchases of oil, or giving away a drinking glass with each 40-litre purchase. Obviously, Caltex cannot ignore this and comes out with its own strategies to increase its share in the market. The pay-off matrix from the viewpoints of India Oil Co. is given in the table below. Determine the optimum strategies for the two oil companies. (14) CALTEX Free soft drinks on Rs 40 purchase INDIAN OIL CO. Decrease price Free soft drinks on Rs 40 purchase Free drinking glass on 40-litres or Decrease price 4 3 -3 1 1 Free drinking glass on 40-litres or more. -3 6 -2
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Based on the image youve provided this is a game theory problem where you have a payoff matrix for two competing companies India Oil Co and Caltex They each have three strategies to choose from Decrea... View the full answer
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