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There are three firms, labeled A, B, and C, each able to produce a single unit of a product. There are numerous suppliers, each of which can supply the necessary input to only one firm; each supplier has a supplier cost (or opportunity cost) of $4. There are two buyers, each interested in buying at most one unit. Both buyers have a willingness-to-pay of $ 9 for each firm's product.
a) What is the total value of this game? What is the added value of each player?
b) How much value do you expect each player to capture?
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Why has scanner-based research been seen as "the ultimate answer" for marketing researchers? Do you see any disadvantages of this methodology?
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