Part A.:
You are considering launching a strategic alliance with a competitor to join your separate skills to develop a new jointly owned technology. Both you and your partner have the option of fully or partially supporting the alliance. Complete the payoff diagram to make this a Prisoner's Dilemma.

Part. B:
You and a competitor are both considering the launch of a new product line, which could be made of either plastic or glass.

a. Are there one or more Nash equilibriums to this game? Circle the equilibrium(s).
B Is there an advantage to coordinating your choices with your competitor?

Transcribed Image Text:

You fully support alliance You partially support alliance Partner fully supports alliance You: 100 You: 150 Partner: 50 Partner: 100 Partner partially supports alliance You: 50 You: Partner: 150 Partner: You use plastic You use glass You: 100 Competitor: 50 Competitor uses plastic You: 25 Competitor: 25 Competitor uses glass You: 50 You: 25 Competitor: 100 Competitor: 25