It is the case of infringement of patent rights granted to Pfizer. 1): The Pfizer biotech has
Question:
It is the case of infringement of patent rights granted to Pfizer.
1):
The Pfizer biotech has left with the following strategies:
1. Can sue MEDXYZ in Court for infringement of copyright.
2. Cooperate with MEDXYZ and take benefit of improvements made by MEDXYZ in that vaccine
2)
The MEDXYZ has the following strategies.
1. Can produce the Vaccine and enter in the market before Pfizer and take first-mover advantages in terms of profit.
2. Can stop doing further development and wait court give a decision about Pfzire claim
3) The game designing:
A. Pfizer will start selling Vaccines in the market while MEDXYZ will also sell the same then both will earn an average profit. If Pfizer's sell and MEDXYZ will not sell then Pfizer will earn more profit. If Pfizer will not sell and MEDXYZ will then later firm will earn more profit.
B. Nash Equilibrium occurs at a point when both will sell such combined quantity of goods as at which there is maximum profit.
1)
Now, change the payoff structure of the game to allow for a dominant strategy for one of the players.
a. What is the new Nash equilibrium?
b. Is this new Nash equilibrium Pareto-efficient? Explain why.
2) Is this game set-up closer to a Cournot equilibrium or to a Stackelberg equilibrium? Explain why.
Fundamentals of Momentum, Heat and Mass Transfer
ISBN: 978-1118947463
6th edition
Authors: James Welty, Gregory L. Rorrer, David G. Foster