Business Case Studies & Business Publications

Salmones Puyuhuapi Part III

Bodily, Samuel E.

Case

Salmones Puyuhuapi Part III

Bodily, Samuel E.

QA-0778 | Published September 15, 2011 | 2 pages Case

Collection: Darden School of Business

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This case series is appropriate for undergraduate, MBA, executive education, and MBA Exec audiences but is specifically designed for decision analysis, a first-year MBA core course. The Part III case considers the strategic competitive interactions between the farming company and the harvesting company. A payoff matrix provides insight into choices the two parties will make in negotiating the terms of the option, in particular the price bid by the farmer and the price accepted by the harvester. The possible equilibria of the matrix analysis and the identification of Pareto Optimal outcomes lead to insight about the outcome of the bidding negotiation.