A2

Let the two companies be denoted by C1 for Zenon and C2 for Maxo producing
two products P1 and P2.
C1
C11- If both the product is improved simulataneously,
P1- 10 months, P2- 10 months
C12- Crash P1
P1- 8 months, P2- 15 months
C13- Crash P2
P1- 15 months, P2- 8 months
C21- If both the product is improved simulataneously,
P1- 10 months, P2- 10 months
C22- Crash P1
P1- 7 months, P2- 14 months
C23- Crash P2
P1- 14 months, P2- 7 months
C1-
Simultaneously marketed products
Increases share by 10% i.e. +10%
If C1 marketed product sooner than C2 by-
2months- Increases share by 24% i.e. +24%
4 months- Increases share by 30% i.e. +30%
6 months- Increases share by 44% i.e. +44%
C2-If C2 marketed product sooner than C1 by-
1 month- C1 loses its share by 4% i.e. -4%
3 months- C1 loses its share by 10% i.e. -10%
5 months- C1 loses its share by 12% i.e. -12%
8 months- C1 loses its share by 15% i.e. -15%
 C21- Simul C22-Crash C23-
P1- 10m, P2- P1 Crash P2 Minimum
10m P1- 7m, P1- 14m,
P2- 14m P1- 7m
C11- Simul 10+10= 20 30-10= 20 30-10= 20 20
P1- 10m, P2- 10m (SADDLE (Maxmin)
POINT)
C12- Crash P1 24-12= 12 -4-4= -8 44-15= 29 -8
P1- 8m, P2- 15m
C13-Crash P2 -12+24= 12 -15+44= -4-4= -8 -8
P1- 15m, P2- 8m 29
20 29 29
Maximum (Minimax)

Lead player- C1 i.e. Zenon – Left side- Maxmin

Second player- C2 i.e. Maxo- (Upper side)- Minimax

Zenon Should Use The Simulatneous Strategy.

Here the minimum value and maximum value coincide , so the situation is
known as saddle point and the game here is known as game with saddle point
and the corresponding strategies are the optimum strategies for the two players.
Since simultaneous strategy is optimum for both, So this is known as game with
pure strategy. And the value of saddle point is known as Value Of Game.