List of games in Chapter 7 The Strategic form

Using Comlabgames

 

Game title

(right click on the game to download it)

Short description of the experiment

Game 7.1: Expansion game

A new market has just opened up in an industry with only two firms and no prospects of entry. The size and market value of one firm is currently twice the other. Both firms have the opportunity to increase their respective capacities to serve this new market, or ignore it, but each makes its own decision without knowing what branch the other firm has chosen. If the larger firm expands and the smaller retains its existing capacity, the value of the larger firm will increase by 25 percent, some of its increase in value at the expense of the smaller firm which would decline in value by 30 percent, because of greater scope for scale economies in distribution. On the other hand if the smaller firm seizes this market opportunity and the larger firm ignores it, the value for the smaller firm will increase by 60 percent while the value for the larger one will decline by 25 percent.

Game 7.2: Expansion game large producer moves first

Game 7.3: Expansion game small producer moves first

Game 7.4: Strategic form of the simultaneous move expansion game

 

Game 7.5: Strategic form of the expansion game where large producer moves first