If the decision to develop and license or wait and imitate in Table is a simultaneous-play repeated game between Lucent and Motorola for each new generation of technology, what happens if the Motorola payoff in the southwest cell is positive $2 billion? How should Motorola €œplay€ in this modified licensing game? How should Lucentplay?

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TO LICENSE OR DEVELOP EXPERTISE IN-HOUSE? Motorola Develop/Patent Imltate/License $1 billlon $3 billlon Develop/Patent $5 billion S4 billion Lucent 0 $1 blllion Imitate/License$9 billion