Does either team have a dominant pricing strategy? If so what is it?

The Village of Oakland Township has made an attractive offer to the Detroit Pistons and the Detroit Show more The Village of Oakland Township has made an attractive offer to the Detroit Pistons and the Detroit Lions to relocate to Oakland Township. While the two teams now charge $25 for the average ticket to a game at their present locations relocating requires cutting prices to an average price of $20 per ticket. The Pistons demand function is given by: QP = 200 6PP + 2PL while that of the Lions is: QL= 150 + 2PP 5PL where Q is thousands of patrons per week and P is the average ticket price. a) Complete the payoff matrix determining the revenue that the two teams can make if they remain at their present locations and if one or both relocate. Revenue Payoff Matrix Detroit Lions Stay PL = 25 Relocate PL = 20 Detroit Stay PP = 25 Pistons Relocate PP = 20 b) Does either team have a dominant pricing strategy? If so what is it? c) What price maximizes the Pistons revenue if it is the only one of the two to relocate? d) What price maximizes the Lions revenue if it is the only one of the two to relocate? Show less

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