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The game is to be repeated many times and each player tries to maximize his average reward over many identical games In the cartel game it is a Nash equilibrium strategy for all rms to adopt the strategy: set the high price until a competitor sets the low price, then subsequently set the low price No rm can increase its time-average reward by deviating from this strategy Thus the cartel can persist and it may require a regulator to break it In subsequent chapters we discuss related notions of cost-sharing and bargaining games ( 7), the principal-agent model in interconnection and regulation (s 12 and 13), and auctions ( 14) In these more general games there may be many Nash equilibrium, or there may be none If there are many, then it can be helpful to introduce additional concepts to choose the equilibrium at which the game is actually solved .

0 F(u + 2 / ) 10 F(u) F(u 2 / )

Because of this, it seems that some leaders would rather keep the expensive plan in its awless, untouched, sacred state rather than see it fail because of the people who get involved and mess it up. After paying the strategy consultants for the master plan, admiration for the plan sets in, but secretly those who have been around the block enough times will think to themselves, Wow, this is such a brilliant plan! If only the plan didn t have to involve our people! So what comes rst The chicken or the egg Do you start with the plan or the people This is a tough question to answer. You will nd experts on both sides of the fence putting forth their arguments. So rather than try to settle this issue here in this chapter, what we would like to put forth is that when considering your restructuring efforts, at some point (whether it is rst or second), it is absolutely imperative that you do an assessment of your people s natural talents and an assessment of the con guration of your team dynamics. It is the only way to assess whether you will be able to pull off the restructuring, and it is the only way to assess whether you have the right leaders to lead the restructured organization.

642 Cournot, Bertrand and Stackelberg Games We next turn to games that model competition amongst a small number of service providers There are two cases to consider In the so-called Cournot model : each supplier announces as his strategic choice the quantities of services that he intends to supply Prices adjust in response to the aggregate supply, so that all the production can be sold, and each supplier obtains a proportionate amount of the consumers outlay In the second case, of the so-called Bertrand model , each supplier announces the prices he intends to charge, and then customers buy services with preference for lower prices Both models are games that are played in a single round Each player must decide what to do without knowing what other players will do.

Solving for | m | in terms of SWR, we obtain | m | = 1 SWR . 1 + SWR (17)

The key to excelling at competency-based questions is to always respond by talking about a specific incident in the past that you dealt with. Don t answer by talking about how you would handle a situation. And don t talk about how you generally handled those kinds of situations in the past. Talk about a single incident that happened to you. Be ready to relate specific details and even names of other people who were involved, approximate dates, and the locations if necessary. Also, be ready to talk about your example in a lot of detail. The interviewers will likely bombard you with dozens of questions to find out what the situation was, who was involved, what you did and why you did it, how other people reacted, what you said or did next, how other people changed their reactions, and so on. A lot of candidates exaggerate their experience to some degree. But the whole point of competency-based interviewing is to catch out liars. Just as the police question suspected criminals, the interviewers fire multiple questions at you in quick succession to get at the truth. You are much more likely to trip yourself up by lying.

This game has a simple solution in the case of two suppliers with different marginal costs c1 < c2 , which are known to both suppliers There is a continuum of Nash equilibria with p2 2 c1 ; c2 ] and p1 D p2 , for in nitesimally small To see this, note that given that Player 1 chooses p1 , with p1 > c1 , Player 2 cannot undercut Player 1 on price without incurring a loss, so he has no incentive to deviate from p2 Given Player 2 chooses p2 , Player 1 maximizes his pro t by taking p1 just less than p2 Hence supplier 1 will always win, with a net bene t equal to.