Business, 27.08.2019 22:30 ellamai16

Microsoft and a smaller rival often have to select from one of two competing technologies, a and b. the rival always prefers to select the same technology as microsoft (because compatibility is important), while microsoft always wants to select a different technology from its rival. if the two companies select different technologies, microsoft’s payoff is 2 units of utility, while the small rival suffers a loss of utility of 1. if the two companies select the same technology, microsoft suffers a loss of utility of 1 while the rival gains 1 units of utility. using the given information, fill in the payoffs for each cell in the matrix, assuming that each company chooses its technology simultaneously. microsoft technology a technology b rival technology a rival ms rival ms technology b rival ms rival ms there is an equilibrium for this game in pure strategies.

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