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New Orleans and Oklahoma City are competing for the Hornets by placing bids. The Hornets will make higher profits in Oklahoma City than in New
New Orleans and Oklahoma City are competing for the Hornets by placing bids. The Hornets will make higher profits in Oklahoma City than in New Orleans, but New Orleans values the Hornets more than Oklahoma City. Which of the following is true? a) The incentives of the team and the cities are misaligned. b) The incentives of the team and the cities are aligned. c) The equilibrium outcome can be seen as a Prisoner's dilemma. d) The team will move to Oklahoma City
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