It is not clear as to whether or not Real Madrid should have the pre-season games in
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Question:
It is not clear as to whether or not Real Madrid should have the pre-season games in Asia or in the US. Actually, the question boils down to the following issue: Is soccer going to be big in the US? For if not, Real Madrid should focus on Asia where other sports are less dominant, and there is a chance to get more TV revenues. Regarding these revenues in the US, let us see the following scenarios from a famous consulting company.
- If soccer is big in the US and soccer is big in Europe then the US TV gets 2 and the European TV gets 3.
- If soccer is big in the US and football is big in Europe then the US TV gets 4 and the European TV gets 4.
- If football is big in the US and soccer is big in Europe then the US TV gets 5 and European TV gets 5. If football is big in the US and football is big in Europe then the US TV gets 3 and European TV gets 2.
Questions: Write the pay-off matrix with two players: US and Europe. Recall that the strategies are Soccer big or Football big. Solve the game (compute the equilibria of the game) and make a recommendation.
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