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6. Consider the following comparison. between the preferences of two types of consumers (Young, Old) over two competing operating systems (x, y). OS X 08
6. Consider the following comparison. between the preferences of two types of consumers (Young, Old) over two competing operating systems (x, y). OS X 08 y Consumer Utility Young 20 -- 0.2 5m 10 + 0.25M} Old 10-41253\":x 20+O.25ny Each consumer adopts only one of the products. Operating system x is a complex= hardtolearn but powerful softxx-'are product whereas operating system y is an intuitive= easytolearn but less powerful software product. Each operating system is competing for use in smartphones. In their preferences, young and old consumers obtain utility 'om the productspecic characteristics of each product but also receive utility from the number of other consumers adopting each product. Specifically in their preference functions, at: and nyrefer to the number of consumers using each product. a. If the adoption process for this software is random Q the order in which either old or young consumers make their decision is random), will one product end up dominating the market? Explain. b. TWhat would happen if there were twice as man}.r young consumers as old consumers, but old consumers were rst to adopt? Would this make a difference to the outcome
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