Overview
Reply to the memo attached (Case 4 Memo). Another attachment is a "hint" for the assignment (Prepare a payoff...). The last attachment with a name "Case 4_economics"is a reply to the memo that was done incorrectly, and below is the comment from the professor:
Use a game theory to answer this question.Calculate TWC profit for each possible strategy and choose a strategy with the highest payoff. Low/Low strategy is shown in the hint and calculated during the class.You could calculate profits for H, H; H, L; and L, H and choose the dominant strategy which is H,H.