BSA 2.

1A
Managerial Economics
10 Seatwork 1
AN ILLEGAL PHONE CALL
1. What kind of game (according to outcome and sequence) is Crandall proposing to Putnam?
 Positive-sum games are those that have the potential to be profitable for both parties. Trade of
commodities and services between two countries serves as one illustration of this. Crandall and the
Department of Justice came to an agreement wherein Crandall consented to many limitations on his
commercial dealings, including his interactions with representatives of competing airlines.

2. If Putnam agreed with Crandall’s proposal, how will this decision affect the buyers?
 A company must consider several criteria prior to determining its pricing. These variables include the cost of the
offering, the target market whose needs it is intended to satisfy, the competitive and economic external
environment, governmental regulations, and other elements of the marketing mix, like the offering's nature,
stage in the product life cycle, promotion, and distribution.