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Monopoly, Oligopoly, Game Theory

February 19, 2019 0 Comment

a) TV commercials are swamped with prescription drugs for anxiety, depression, impotence, and heartburn.  Oftentimes, a drug company would try to get consumers to ask their doctors to switch to their products.  This has something to do with the patent.  The patent on the old drug runs out that year, soon the price will go down as other companies can produce the same drug.  The new ads that ask consumers to switch is a way of building loyalty to a new, monopolized brand at a time when the old monopoly will soon disappear.    Now: Microsoft introduces new operating systems every three or four years.  How is this behavior similar to or different from the drugs case?  State two similarities and two differences.

b) In John Grisham’s novel, “A Painted House”, the 7-year old Luke has the following thoughts: ..”If I told him about Hank, I knew exactly what would happen.  He’d march me down the front yard and we’d have a confrontation… Hank would misjudge his opponent, and before long the stick would come into play….And we’d be left short-handed.  I’d be expected to pick even more cotton.  So I didn’t say a word.”  Luke understands the need to choose the best strategy (in our class context, Game Theory), since he’d like to avoid doing more arduous labor than would otherwise be required of him.  As a young child, you probably went through a similar train of thought that led you not to do something that would have been the morally correct thing to do.  Give one example.

 As a guideline, each of the 10 points will be derived from the following:

  1. Post your answer (400-500 words) to the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts
  2. Write in correct grammar; any errors will translate to a deduction in points.
  3. Check for the spelling; any errors will deduct points.
  4. Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).
  5. You get one point when you respond to one of your classmates’ posts, also with substantive comments (100-200 words).
  6. One more point when you respond to another classmate’s post (100-200 words).
  7. One point for collaboration.  It is intended that your involvement in discussions be of a collaborative nature. Collaboration spirit is quite different from confrontation.
  8. Deadline: due date for each DQ will be on Monday night 11.55pm, but you are free to make your comments prior to Monday night.  One point will be deducted for each day of late submission.
  9. Offer a creative solutions in addition to the obvious socio-economic impacts of each topic, such as environment, politic, or other issues.  
  10. Offer a future recommendation or alternative options for the future with regard to the topic in question.
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