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Sony and Zenith must each decide which technology to utilize in building their 2019 model high definition television (HDTV) sets: either Alpha technology or
Sony and Zenith must each decide which technology to utilize in building their 2019 model high definition television (HDTV) sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology. The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes: Zenith's technology Alpha Beta A B Alpha Sony's technology $16, $12 $11, $10 C D Beta $9, $8 $13, $15 Payoffs in billions of dollars of profits Suppose the technology decision will be made sequentially, and Sony makes a strategic commitment to one of the technologies so that Sony can make the first move. Sony will choose will choose and Zenith
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