Decision Making Globalized Economy

1.Sales of Windows software to computer makers like Hewlett-Packard Co, Lenovo Group and Dell Inc dipped by 7 perecent as installed in their machines.The sales of the software to the PC makers can be explained by the use of Game Theory.Suppose there are other software makers in the market place like Opera,Apple,Google and others.They offer heavy discounts and also many user friendly features along with new and interesting features which help to attract more customers.Thus when these software vendors sell their products to the PC manufacturers they have an incentive of high revenues and also increasing their brand attractiveness.This helps them to tie up with the other software developing firms for more profit.Suppose in this case firm A wants a lower price software and Firm B is a software provider.Now according to the market there will be no profit in this transaction as the customers donot want it.So in the cooperative game theory every firm will engage in the last box where they can make profits.351472549784002. Microsoft with its Surface tablet had a sharp increase to about $400 million sales, due to rising interest in the heavily discounted and smaller Surface RT model.If we apply the Kinked Demand Model we