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Question 2 What ithe Nash lin of thi ga Por ptel cet jst yur anne ther iy dr sar to guetion F Theatre (0.08) sed hy Down for player 1 Question 2. The software necessary for the Online Ranking is proprictary to the company “E-Fase.” Apulia can acquire F-Fse and thus prevent Siciliana fram offering online banking. I Apulia does not acxquire B-Fuse, E-Fuse will license its sofware hb ‘What is the highest amount that Apulia should be willing to pay to acquire E-Fuse For partial credit, justify your answer. Answer to question & |The wale of aciring F-Fuse for Apulia is given by the payoff earned if t offers line banking exclusively minus the payoff it ears when both bank offer online banking, ie. 12-7 = 6 Question 4 The software nectssary for the Online Banking is proprietary to the eompany Each bank can acquire E-Fuse and thus provent the other bank from offering online basking, ‘Each bank understands that failure in acquiring E-Fuse will result in the other bank acquiring K-Fuse, What is the highest amount that Apulia should be willing to pay to acquire E-Fuso? What is the highest amount that Siciliana shonld be willing to pay to to acquire F-Fuse? For portal credit, justify your answer. Fuse! ‘Answer to question 4 ‘The value of aquiting E-Fuse for each bank is given by the payoff caned if it olfers ouline banking exclusively, mninus the payolf when the other bank offers online banki Apulia: 13-6 Sicilians: 12-3 xelusivey. Answer to a Player 2 20 8 Player 1 0 5 8 c 5 20 4 All horizontal arrows leave colunm X, henee X is dominated for player 1 All vertical arrows leave row A, hence A is dominated for player 2