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1 ) Nestl ' s has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers. Nestl created
Nestls has over one hundred production facilities that all purchase hair nets and other hygienic supplies through independent suppliers. Nestl created a centralized purchasing system that is cumbersome to use and has the potential to bargain for lower prices. Suppose that a division can purchase hairnets for $ independently. If they all purchase through the central system, hairnets cost $ But if one division uses the system and the other purchases independently, the cost to the first is $ while the cost to the second is $ What does the simultaneous move game look like and what is the equilibrium?
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