Question
Firms B and C have numerous suppliers to choose from, each of which can supply the necessary input to only one firm; each supplier has
Firms B and C have numerous suppliers to choose from, each of which can supply the necessary input to only one firm; each supplier has a supplier cost (or opportunity cost) of $4. There are two buyers, each interested in buying at most one unit. Both buyers have a willingness-to-pay of $9 for firm B's and C's product. The suppliers have a supplier cost of $5 for supplying firm A, and the buyers have a willingness-to-pay of $11 for firm A's product
What is the total value of this game?
What is the added value of each player?
How much value do you expect each player to capture?
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