You are the CEO of a large shipping conglomerate, Sealine.Your industry is dominated by two large players, including yourself, and the rest of competition is composed of very small players that don't have much influence on the game. You enjoy economies of scale, which has afforded you an advantage over your competition; for decades you were able to increase your market share by setting lower prices. This sizable market share of 23% came at a dear cost: price wars which has plagued the industry leaving you suffering an overcapacity problem and reducing your profits.

As a CEO, you signal to your competition your intent to fight by publicly declaring that you are adamant about protecting you market share at all cost. You hire a consultant, a game theoretic tactician, famously referred to in the business as Genie, to help you identify your best pricing strategy.

Genie ignores the small players in the market, and focuses only on the largest competitor, Draconian, and gathers data on costs, the effect of a price difference between the two competitors on each firm's market share, the current size of trade for the entire industry (the quantity demanded in the market), and market shares, of both Sealine and Draconian.Her findings are summarized below.