Profits at Quick and Costs to Smart with No Coordination

2 Profits at Quick and Costs to Smart with No Coordination 

Question 1 How many trucks will Quick commit to maximize its expected profit each day  

Note that Quick and Smart are separate companies, each seeking to optimize their performance. Thus, Quick will choose a planned capacity to maximize its profits. Suppose Quick commits T trucks. The corresponding expected profit for Quick is as follows  

A summary of Quicks expected profit under different numbers of committed trucks is as follows (Table 1.2)  

Thus committing 3 ttucks maximizes Quicks expected profits. 

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