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Company X is a large firm in the IT industry and Company Y is a small firm in the same industry. Consider the following sequential
Company X is a large firm in the IT industry and Company Y is a small firm in the same industry. Consider the following sequential move game in which Company X first decides whether or not to outsource its accounting division. After Company X makes its decision, Company Y then decides whether or not to outsource. What is the Nash equilibrium of this game? Outsource 20, 10 Outsource Company Y Don't outsource Company X 30, 0 Don't Outsource outsource Company Y 10, 15 Don't outsource 25, 5
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