The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A)$0.
B)$50 million.
C)$30 million.
D)$70 million.

Question

The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital.  An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A)$0. 
B)$50 million. 
C)$30 million. 
D)$70 million.

Quizplus · Accepted Answer

The Answer of The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital.  An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A)$0. 
B)$50 million. 
C)$30 million. 
D)$70 million.

The Payoff Matrix Below Shows the Payoffs (In Millions of Dollars)