Microeconomics: Theory and Applications with Calculus, 4e

13 Game Theory

A camper awakens to the growl of a hungry bear and sees his friend putting on a pair of running shoes. “You can’t outrun a bear,” scoffs the camper. His friend coolly replies, “I don’t have to. I only have to outrun you!”

CHALLENGE Intel and AMD’s Advertising Strategies

Intel and Advanced Micro Devices (AMD) dominate the central processing unit (CPU) market for personal computers, with 97% of total sales in 2014 and the graphic chips market with 85% in 2015. Intel uses aggressive advertising—its very successful Intel Inside campaign—and charges relatively high prices, while traditionally AMD used little advertising and relied on ...