Subject category:
Case Method and Specialist Management Disciplines
Published by:
Darden Business Publishing
Version: 27 April 2016
Revision date: 13-May-2016
Length: 10 pages
Data source: Field research
Abstract
In this case, the situation is a classic duopoly. Two shipping firms are in a price war over the market for containerized shipping to and from a small Caribbean island. The case presents a table of contributions to both firms as a function of their prices. This table serves as a basis by which the class can explore the concepts of Nash equilibrium, price leadership, and prisoner's dilemma. It is also available with the case as a student spreadsheet. See also 'Lesser Antilles Lines (B)' and 'Lesser Antilles Lines (C)'.
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Abstract
In this case, the situation is a classic duopoly. Two shipping firms are in a price war over the market for containerized shipping to and from a small Caribbean island. The case presents a table of contributions to both firms as a function of their prices. This table serves as a basis by which the class can explore the concepts of Nash equilibrium, price leadership, and prisoner's dilemma. It is also available with the case as a student spreadsheet. See also 'Lesser Antilles Lines (B)' and 'Lesser Antilles Lines (C)'.
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