Managerial Economics 2nd Edition by William Boyes

Exercise 1

Texas Instruments once announced a price for random-access memories that wouldn't be available until two years after the announcement. A few days later, Bowmar announced that it would produce this product and sell it at a lower price than Texas Instruments. A few weeks later, Mo and sell it below the Bowmar price. A few weeks after this, Texas Instruments announced a price that was one-half of Motorola's. The other two firms announced that, after reconsidering their decision, they would not produce the product. What do you think was Texas Instruments' reason for announcing the price of a product two years before it was actually for sale?