hw2 - S'11 Prof. Stahl 354K Game Theory Problem Set No. 2...

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Prof. Stahl 354K Game Theory Problem Set No. 2 Due: Thursday, Jan 27 1) The Electa Company has to ship 10,000 television sets from its factory in Manila to an American importer in New York City. As can be seen in Figure 1, the firm can either ship the sets by boat directly to Los Angeles or ship them via the Panama Canal to either New Orleans or New York City. From Los Angeles it can ship the sets to New York by truck or to New Orleans by truck or train. From New Orleans it can ship the sets to New York by either truck or train or boat. Draw the firm’s decision tree. FIGURE 1 The routing possibilities between Manila and New York City. 2) This is a continuation of problem 1). Listed here are the freight charges (in dollars per television set) for each mode of transportation and each route: Transportation Costs (dollars per television set) By boat: Manila-Los Angeles $35 Manila-New Orleans 1 $60 Manila-New York 1 $100 New Orleans-New York $45 By Truck: Los Angeles-New York $55 1 This includes the fee for using the Panama Canal. Manila
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This note was uploaded on 06/09/2011 for the course ECON 354 taught by Professor Econ during the Spring '11 term at University of Texas at Austin.

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hw2 - S'11 Prof. Stahl 354K Game Theory Problem Set No. 2...

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