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Business happens in a network consisting of different firms who have correlations with each other. For example, an automobile manufacturer has many dealers in different locations. There are correlations between the manufacturer and the dealers and correlations among the dealers. Each firm’s decision on matters such as price influences the other firms’ profits. By using the concept of game theory, such a decision can be based on a reasonable rationale. Yet, to apply game theory to real-world problems, we must first understand the “game rules” in business through analyzing horizontal and vertical correlations between firms and how such features as information asymmetry affects the equilibrium solution.

Business happens in a network consisting of different firms who have correlations with each other. For example, an automobile manufacturer has many dealers in different locations. There are correlations between the manufacturer and the dealers and correlations among the dealers. Each firm's decision on matters such as price influences the other firms' profits. By using the concept of game theory, such a decision can be based on a reasonable rationale. Yet, to apply game theory to real-world problems, we must first understand the "game rules" in business through analyzing horizontal and vertical correlations between firms and how such features as information asymmetry affects the equilibrium solution.

Excel spreadsheet for 9B14E015.

GetClarity Inc. is a start-up firm that specializes in the accumulation, analysis and sale of various types of data, including the firm’s own data, which has been attained through an exclusive contract. The company’s current job involves working for an auto-manufacturing client to identify a potential location for a new dealership. Two young analysts conduct data analysis on the age of the area and the market size, based on the customer demographic data. An Excel spreadsheet for students is available (see 7B14E015).

Supplement to getGlarity (A) (see 9B14E015). An Excel spreadsheet for this supplement is available (see 7B14E016).

GetClarity Inc. is a start-up firm that specializes in the accumulation, analysis and sale of various types of data, including the firm's own data, which has been attained through an exclusive contract. The company's current job involves working for an auto-manufacturing client to identify a potential location for a new dealership. Two young analysts conduct data analysis on the age of the area and the market size, based on the customer demographic data.

Student spreadsheet for case W14290.

Supplement case to product W14290.

Student spreadsheet for case W14292.

The president of Oakville Hydro Energy services needed to make a decision on the installation of an electricity-generating engine at the regional municipal Wastewater Treatment Plant in Burlington, Ontario. This engine installation was in support of the production of green power, and the Ontario Power Authority (OPA) had introduced a feed-in tariff that paid a premium for the generation of this type of green power. One of three specific engines would be purchased and installed to generate electricity from the combustible gases produced during wastewater treatment. The president had to decide which engine generator would produce the most favourable output and the best return for Oakville Hydro and the municipality. The president also needed to decide whether or not to integrate the existing on-site gas storage tank into the controls of the generator system.