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Microsoft's Price $800 $790 Sony's Price $800 700, 800 400, 1100 $790 800, 700 600, 900 Suppose that Sony and Microsoft compete in selling video
Microsoft's Price | |||
$800 | $790 | ||
Sony's Price | $800 | 700, 800 | 400, 1100 |
$790 | 800, 700 | 600, 900 |
Suppose that Sony and Microsoft compete in selling video game consoles with constant average cost of $750 and demand is as in the table above (in '000s).
Question 5 (5 points)
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(5 Points) Construct the Payoff Matrix (in Millions) in the simultaneous moves game. Fill in the blanks below with the format Sony Payoff, Microsoft Payoff. Ex: 25, 15
Microsoft Payoff | (Millions) | ||
$800 | $790 | ||
Sony Payoff | $800 | BLANK 1 | BLANK 2 |
(Millions) | $790 | BLANK 3 | BLANK 4 |
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