2. Individual Problems 15-3 Microsoft and a smaller rival often have to select from one of two competing technologies, A

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2 Individual Problems 15 3 Microsoft And A Smaller Rival Often Have To Select From One Of Two Competing Technologies A 1 (27.18 KiB) Viewed 47 times

2. Individual Problems 15-3 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 6 units of utility, while the small rival suffers a loss of utility of 3. If the two companies select the same technology, Microsoft suffers a loss of utility of 3 while the rival gains 3 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 Technology A Rival Microsoft Rival Technology B Rival: Microsoft True or False: There is no equilibrium in pure strategies. O True O False Rival: Rival: Microsoft Microsoft