Economics Challenge 6
@spectrumecons, he conducted economic challenges, it is 6 series, I enjoyed a lot.
In this series he ask for how competition and/or cooperation could take place, hear I give my analysis.
On giving information I make a pictorial table for easily understanding,
From above table we easily understand, which bakery cooperate with others and which to give comitation.
In my analysis Thompsons and Draxton's cakes cooperate with each other,
Second combination is Yummy yummy yum with Best Buy
Hear we know Thompsons give very quality products at low rate, Draxton's cakes as 40% unique products but high rate.
If both combine they give though comitation to others.
Because if they combined in both baker's, they have high quality products at reasonable price. And have some unique products also than others.
Come to second one Best Bye is look like Thompson, they also give same price of Thompson also but it has 60% unique products at reasonable rate only problem is newly arriving bakery.
So they need one old bakery with quality products. If Best Bye cooperate with Yummy yum yum bakery both get profit. Because Best bye give quality products at low rate, if they combine both they get some unique products than Thompson because yummy yum yum have 20% unique products.
If this combination in both bakery has Thompsons products along with unique products at moderate price. They give good compilation to the Thompson and Draxton's Cakes.
This is my analysis.
Original contest link is
Thanking you