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September 30, 2014

Homework Help: game Theory

Posted by Carlos on Saturday, December 12, 2009 at 3:20pm.

When the McDonald Corporation reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its US sales growth. It didn’t. Within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald’s plans?

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