Question
(1) Suppose the Korean government supports Samsung by releasing 10 billion export subsidies so that all Samsung products can be sold cheaply to the Chinese
(1) Suppose the Korean government supports Samsung by releasing 10 billion export subsidies so that all Samsung products can be sold cheaply to the Chinese market. The new payoff matrix becomes:
What's the new Nash Equilibrium? What's the dominant strategy for Samsung?
(2) What's the total revenue of winning the Chinese market given the cost of the export subsidy? (all payoffs in the matrix represent the total revenue of Samsung after adding the subsidy) Does the Korean government have a constant interest in supporting Samsung with the same amount of export subsidy?
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