Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. If the two companies select different technologies, Microsoft's payoff is 2 units of utility, while the small rival suffers alossof utility of 1. If the two companies select the same technology, Microsoft suffers alossof utility of 1 while the rival gains 1 units of utility.

Using the given information, fill in the payoffs for each cell in the matrix, assuming that each company chooses its technology simultaneously.

Microsoft

Technology ATechnology B

Technology A.Rival:_____,Microsoft____Rival:_____,Microsoft____

Rival

Technology B.Rival:_____,Microsoft____Rival:_____,Microsoft____

True or False: There is an equilibrium for this game in pure strategies.