Game Theory & Strategy

  Imagine that you own a pharmacy in your area. One of your competitors launches a “We will not be undersold” campaign, which promises consumers 150 % of any difference between its prices and the advertised prices of other pharmacies. In 300 to 400 words address the following: -Evaluate the social issues in your community as well as the economic culture that is influencing this type of pricing competition. -Develop and describe a microeconomic model that is responsive to the service demands of your market. -Based on your conclusions, how would you react to this situation, and with what business strategy would you approach this? -How might you apply game theory to the creation of your strategy?