Corporate Buying II
Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers.Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices.Suppose that each of two divisions can purchase hairnets for $8 independently.If they all purchase through the central system,hairnets cost $6.But if one division uses the system and the other purchases independently,the cost to the first is $9 while the cost to the second is $7.What does the sequential move game look like for two divisions where division 1 goes first? What is the equilibrium?

Question

​Corporate Buying II
Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers.Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices.Suppose that each of two divisions can purchase hairnets for $8 independently.If they all purchase through the central system,hairnets cost $6.But if one division uses the system and the other purchases independently,the cost to the first is $9 while the cost to the second is $7.What does the sequential move game look like for two divisions where division 1 goes first? What is the equilibrium?

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The Answer of ​Corporate Buying II
Nestlé's has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers.Nestlé created a centralized purchasing system that is cumbersome to use has the potential to bargain for lower prices.Suppose that each of two divisions can purchase hairnets for $8 independently.If they all purchase through the central system,hairnets cost $6.But if one division uses the system and the other purchases independently,the cost to the first is $9 while the cost to the second is $7.What does the sequential move game look like for two divisions where division 1 goes first? What is the equilibrium?

​Corporate Buying II Nestlé's Has Over One Hundred Production Facilities That All Purchase

Corporate Buying II Nestlé's Has Over One Hundred Production Facilities That All Purchase