Samsan Tech is a start-up founded three years ago by three developers Nam Do-san, Lee Chul-san, and Kim Yong-san. They recently joined Sandbox, a start-up incubator, enlisting the help of So Dal- mi and Jeong Sa-ha as their company's CEO and Chief Designer respectively. The company is currently developing NoonGil, a gadget-based artificial intelligence app to assist people with visual impairments. Dal-mi understands that it is a risky and expensive project. The development phase itself is estimated to cost her company W250 million and this cannot be recovered. Furthermore, the API cost of the app is W4 per 15 seconds per user. Four partners of Samsan Tech believe that they must put the app in Google Play to reach wider audience. Do-san did some initial assessments, and the results are as follows: Options Assessment results Scale-up by launching the app on Potential users: 50,000 active daily users Google Play Limiting the scale of the app Expected usage of app per user: 5 minutes per day User charge: W8 per minute Viability: If supported by investor's money, NoonGil would survive in 5 years. The investor would receive all the revenues generated during those years while Samsan Tech benefits with valuation increases by W9,125,000,000. Relying on internal budget will only sustain the app for 6 months. Samsan Tech will receive all the revenues generated during those 6 months. However, company's valuation will only gain by W730,000,000. Potential users: 1,000 active daily users Expected usage of app per user: 5 minutes per day User charge: W8 per minute Viability -It should be noted that with NoonGil's limited exposure, Samsan Tech's valuation will slightly rise by W73,000,000. If supported by investor's money, NoonGil would survive in 5 years. The investor would receive all the revenues generated during those years. -Relying on internal budget will only sustain the app for 6 months. Samsan Tech will receive all the revenues generated during those 6 months. Note: Do-san assumes a year to have 365 days. Given the nature of the project, they need an investor to finance its development. One of those prospective investors is Alex Kwon who is considering investing W3 billion with Samsan Tech for NoonGil development. If Alex agrees the invest, he can not withdraw that money for 5 years but will receive all the revenues made from NoonGil during those five years. In return, Samsan Tech will receive the increasing valuation in full. a. Define the player in this "NoonGil game" b. Define the strategy set of each player in this "NoonGil game" c. Fill the following table: Scale-up through Google Play 6-month scenario 5-year scenario Samsan Tech Cost of app development Cost of API for NoonGil's operation Samsan Tech's valuation gain NoonGil's revenue Alex Limited release 6-month scenario 5-year scenario Investment NoonGil's revenue d. Construct the payoff matrix for this "NoonGil game" using the information that you have in point (c). (Hint: Payoffs in the matrix should be the net gain of each player. Pay attention to what each player receives) e. What is the best strategy of each player in this "NoonGil game"? f. Does the players have dominant strategy? Explain! (You may also rationalise your findings by taking clues from episode 8 of the series. However, I am not asking you to watch it. Just use your logic) g. Is there any Nash equilibrium in this game? What happens and why? (Hint: there may exist no equilibrium, or one equilibrium, or two equilibria) h. In the first episode, 15 years earlier Sandbox's founder Seo Yi-Sook said to Dal-mi's father that: "Running a business is hard. If you succeed, you will be called a CEO. If you fail, you will be called a fraud". How could you relate Yi-Sook's opinion with your findings in the "NoonGil game"? Is it possible that this view informs Alex's strategy