Game 02 · Strategy
Price War
You run a telecom company. Two rivals fight you for the same customers. Set your price every round. Win share, but do not burn the whole market down.
The setup
You run a telecom company.
Two rivals compete with you for the same customers. Every round you set your price. They react. Win share and you win profit. But undercut everyone into the ground and everyone gets poorer, including you. Eight rounds. Then you find out if you played it smart or just played it safe.
It is real game theory
This is differentiated Bertrand competition, the same model behind the Jio telecom price war in the microeconomics course.
Two minds, not one
The Strategist best-responds rationally. The Discounter just undercuts. Beating both takes different tactics.
Nash vs collusion
At the end you see how your profit compares to rational competition and to (illegal) coordination.