Managerial Economics And Globalization
The discussion answer(s) must be a minimum of 125 words of substance with any references cited in APA format. No copying and pasting of work previously done for someone else.
Discussion A-Sequential-Move Game Strategy
In the text, we consider a sequential-move game in which an entrant was considering entering an industry in competition with an incumbent firm (See Figure 15-1). Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying at a loss of 5 for each player). What is the equilibrium of this game? Discuss if the entrant is better off with or without the ability to withdraw. I have added a diagram of the game to help you see the options. See Diagram attached.
Discussion B-Type I and II Decision Error Costs
The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not to hire is made.
· What are the Type I and Two decision errors costs?
· Which decision error is more likely to be discovered by the CEO?
· How does this affect the HR manager’s hiring decisions?
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