Question
Apple and Google are considering the adoption of new high-speed streaming technologies. Each company can decide to introduce this technology over WiFi systems or over
Apple and Google are considering the adoption of new high-speed streaming technologies. Each company can decide to introduce this technology over WiFi systems or over Bluetooth systems. The payoffs (in billions of dollars, negative numbers denote losses) for Apple are: 20 if both companies use Bluetooth; -10 if Apple uses WiFi but Google uses Bluetooth; -10 if Apple uses Bluetooth but Google uses WiFi; and 10 if both companies use WiFi. Similarly, the payoffs for Google are: 5 if both companies use Bluetooth; -5 if Apple uses WiFi but Google uses Bluetooth; -5 if Apple uses Bluetooth but Google uses WiFi; and 10 if both companies use WiFi..
a. Write down/Draw the strategic form of this game.
b.Does either player in this game have a dominant strategy? Explain.
c.Does this game have any Nash equilibria? Explain.
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