Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to

Question

18 days ago

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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 4 units of utility, while the small rival suffers a loss of utility of 2. If the two companies select the same technology, Microsoft suffers a loss of utility of 2 while the rival gains 2 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: , Microsoft Rival: , Microsoft Technology B Rival: , Microsoft Rival: , Microsoft True or False: There is an equilibrium for this game in pure strategies. True False

Business

1 answer:

arsen [3.2K] · Answer 1 · 2026-03-20T13:51:30+03:00

Response:

True

Explanation:

Microsoft matrix and its competitors. There exist two methods to utilize the technology. Microsoft and its competitor may act concurrently. The equilibrium strategy can be derived through the payoff matrix. Both companies adopt a pure strategy. The pure strategy criteria include max-min and min-max. The max-min strategy signifies selecting the worst-case scenario from among the best outcomes, while min-max is about choosing the optimum outcome from all the worst ones.