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Discuss the following formula (not in numbers, but from a organizations perspective in the decision making processes).

Discuss the following formula (not in numbers, but from a organizations perspective in the decision making processes).

Expected payoff = (probability of rivals matching x size of loss from price cuts) + (probability of rivals not matching x gain from lone price cut) p. 248

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No need to explain the full formula, just pick a segment and run with it.

 

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