STRATEGIC GAMESCigarette manufacturers were among the first companies to advertise extensively on television. Older people today can still hum the heavily advertised jingle, “Winston tastes good like a cigarette should.” They can also remember beautiful women with black eyes as they testified, “Tarey-ton smokers would rather fight than switch.” John Wayne and other movie stars appeared in commercials to endorse cigarettes. Cigarette companies were the major sponsors for many popular television shows. The companies also paid to have cigarettes included in the actual programs. In 1962 the cartoon characters Fred and Wilma Flintstone were shown smoking Winston cigarettes.The U.S. federal government banned television advertising of cigarettes starting in 1971. Interestingly, the leading cigarette manufacturing companies supported the ban, even though they had advertised heavily on television since 1940s.1. Design a simple two-company game that illustrates why it might have been in the economic interests of the cigarette companies to support the ban. In designing the game, assume that there is no regulation and that the two firms simultaneously choose between advertising and not advertising. Display your hypothetical payoffs in strategic form (see Table 15.7, pg. 176) and highlight the Nash equilibrium. Explain the intuition for why the firms in your example would favor regulation to ban advertising.2. Can you conclude from your example that all firms in all industries will favor bans on television advertising? ExplainCan you ever envision a situation where one firm might favor the ban and a competing firm might be against it? Explain your opinion.EXPLAIN ALL ANSWERS IN DETAIL
BUS 680 STRATEGIC GAMES – Cigarette manufacturers
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.