Samsan Tech is a start-up founded three years ago by three developers Nam Do-san, Lee Chul-san, and Kim Yong-san. They recently joined Sandbox, a start-up incubator, enlisting the help of So Dal-mi and Jeong Sa-ha as their company's CEO and Chief Designer respectively The company is currently developing MARGIl a gadget-based artificial intelligence app to assist people with visual impairments. Dal-ml understands that it is a risky and expensive project. The development phase itself is estimated to cost her company w250 million and this cannot be recovered. Furthermore, the API cost of the app is W4 per 15 seconds per user Four partners of Samsan Tech believe that they must put the app in Google Play to reach wider audience Do-san did some initial assessments, and the results are as follows: Option Assessment results - Potential users: 50,000 active daily users Scale-up by launching Expected usage of app per user: 5 minutes per day the app on Google User charge: W8 per minute Play Viability - If supported by investor's money. Nasagil would survive in 5 years. The investor would receive all the revenues generated during those years while Sacosan Tech benefits with valuation increases by W9.125,000,000 - Relying on internal budget will only sustain the app for 6 months. Sacosan Tech will receive all the revenues generated during those 6 months. However, company's valuation will only gain by W730,000,000 Potential users: 1,000 active daily users Limiting the scale of Expected usage of app per user: 5 minutes per day the app User charge: W8 per minute - Viability - It should be noted that with Nargils limited exposure Sapsan Tech's valuation will slightly rise by W73,000,000 - if supported by investor's money. Noen Gil would survive in 5 years. The investor would receive all the revenues generated during those years - Relying on internal budget will only sustain the app for 6 months. Sapsan Tech will receive all the revenues generated during those 6 months Note: Do-san assumes a year to have 365 days. Given the nature of the project, they need an investor to finance its development. One of those prospective investors is Alex Kwon who is considering investing W3 billion with Sarosan Tech for NoonGil development. If Alex agrees the invest, he can not withdraw that money for 5 years but will receive all the revenues made from Noon Gil, during those five years. In return, Sarosan Tech will receive the increasing valuation in full a. Define the player in this "NeoGilgame" b. Define the strategy set of each player in this "NoonGilgame"! c. Fill the following table Scale-up through Google Play 6-month 5-year scenario scenario Limited release 6-month 5-year scenario scenario Saman Tech Cost of 10 development Cost of API for Noong it's operation Samsar Tech's valuation an NoonGi's revenue Alex Investment NoonGir's revenue d. Construct the payoff matrix for this "NeroGil game" using the information that you have in point (C). (Hint: Payoffs in the matrix should be the net gain of each player. Pay attention to what each player receives) .. What is the best strategy of each player in this "NoonGil game"? f. Does the players have dominant strategy? Explain! (You may also rationalise your findings by taking clues from episode 8 of the series. However, I am not asking you to watch it. Just use your logic) g. Is there any Nash equilibrium in this game? What happens and why? (Hint: there may exist no equilibrium, or one equilibrium, or two equilibria) h. In the first episode, 15 years earlier Sandbox's founder See Yi-Sook said to Dal-mi's father that "Running a business is hard. If you succeed, you will be called a CEO. If you fail, you will be called a fraud". How could you relate Yi-Sook's opinion with your findings in the Nero Gilgame*? Is it possible that this view informs Alex's strategy? Samsan Tech is a start-up founded three years ago by three developers Nam Do-san, Lee Chul-san, and Kim Yong-san. They recently joined Sandbox, a start-up incubator, enlisting the help of So Dal-mi and Jeong Sa-ha as their company's CEO and Chief Designer respectively The company is currently developing MARGIl a gadget-based artificial intelligence app to assist people with visual impairments. Dal-ml understands that it is a risky and expensive project. The development phase itself is estimated to cost her company w250 million and this cannot be recovered. Furthermore, the API cost of the app is W4 per 15 seconds per user Four partners of Samsan Tech believe that they must put the app in Google Play to reach wider audience Do-san did some initial assessments, and the results are as follows: Option Assessment results - Potential users: 50,000 active daily users Scale-up by launching Expected usage of app per user: 5 minutes per day the app on Google User charge: W8 per minute Play Viability - If supported by investor's money. Nasagil would survive in 5 years. The investor would receive all the revenues generated during those years while Sacosan Tech benefits with valuation increases by W9.125,000,000 - Relying on internal budget will only sustain the app for 6 months. Sacosan Tech will receive all the revenues generated during those 6 months. However, company's valuation will only gain by W730,000,000 Potential users: 1,000 active daily users Limiting the scale of Expected usage of app per user: 5 minutes per day the app User charge: W8 per minute - Viability - It should be noted that with Nargils limited exposure Sapsan Tech's valuation will slightly rise by W73,000,000 - if supported by investor's money. Noen Gil would survive in 5 years. The investor would receive all the revenues generated during those years - Relying on internal budget will only sustain the app for 6 months. Sapsan Tech will receive all the revenues generated during those 6 months Note: Do-san assumes a year to have 365 days. Given the nature of the project, they need an investor to finance its development. One of those prospective investors is Alex Kwon who is considering investing W3 billion with Sarosan Tech for NoonGil development. If Alex agrees the invest, he can not withdraw that money for 5 years but will receive all the revenues made from Noon Gil, during those five years. In return, Sarosan Tech will receive the increasing valuation in full a. Define the player in this "NeoGilgame" b. Define the strategy set of each player in this "NoonGilgame"! c. Fill the following table Scale-up through Google Play 6-month 5-year scenario scenario Limited release 6-month 5-year scenario scenario Saman Tech Cost of 10 development Cost of API for Noong it's operation Samsar Tech's valuation an NoonGi's revenue Alex Investment NoonGir's revenue d. Construct the payoff matrix for this "NeroGil game" using the information that you have in point (C). (Hint: Payoffs in the matrix should be the net gain of each player. Pay attention to what each player receives) .. What is the best strategy of each player in this "NoonGil game"? f. Does the players have dominant strategy? Explain! (You may also rationalise your findings by taking clues from episode 8 of the series. However, I am not asking you to watch it. Just use your logic) g. Is there any Nash equilibrium in this game? What happens and why? (Hint: there may exist no equilibrium, or one equilibrium, or two equilibria) h. In the first episode, 15 years earlier Sandbox's founder See Yi-Sook said to Dal-mi's father that "Running a business is hard. If you succeed, you will be called a CEO. If you fail, you will be called a fraud". How could you relate Yi-Sook's opinion with your findings in the Nero Gilgame*? Is it possible that this view informs Alex's strategy