Sony and Zenith must each decide which technology to utilize in building their 2002 model high definition television (HDTV) sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology. The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes:

Suppose the technology decision between Alpha and Beta will be made simultaneously. Answer the following questions:
-For the sequential game in part d, use the roll back method to find the Nash equilibrium decision path. Circle this decision path on the game tree above. Sony earns profit of $___________ and Zenith earns profit of $_________.
Suppose instead that Zenith decides to make a strategic commitment to one of the technologies so that it can make the first move in a sequential decision game.

Question

Sony and Zenith must each decide which technology to utilize in building their 2002 model high definition television (HDTV) sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology. The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes:
  
Suppose the technology decision between Alpha and Beta will be made simultaneously. Answer the following questions:
-For the sequential game in part d, use the roll back method to find the Nash equilibrium decision path. Circle this decision path on the game tree above. Sony earns profit of $___________ and Zenith earns profit of $_________. 
Suppose instead that Zenith decides to make a strategic commitment to one of the technologies so that it can make the first move in a sequential decision game.

Quizplus · Accepted Answer

The Answer of Sony and Zenith must each decide which technology to utilize in building their 2002 model high definition television (HDTV) sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology. The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes:
  
Suppose the technology decision between Alpha and Beta will be made simultaneously. Answer the following questions:
-For the sequential game in part d, use the roll back method to find the Nash equilibrium decision path. Circle this decision path on the game tree above. Sony earns profit of $___________ and Zenith earns profit of $_________. 
Suppose instead that Zenith decides to make a strategic commitment to one of the technologies so that it can make the first move in a sequential decision game.

Sony and Zenith Must Each Decide Which Technology to Utilize