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Two companies must collaborate to develop a new product. They must choose between two products, product A or product B. While Company ABC has a

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Two companies must collaborate to develop a new product. They must choose between two products, product A or product B. While Company ABC has a patent for product A, Company XYZ has a patent for product B. If a product gets developed, the company without a patent must pay licensing fees of $200K. The companies' profits (in $1000) are as follows: if product a is developed profits for abc would be 300 and profits for xyz would be 100 if product B abc company would see profits of 100, and xyz 300 1. What are the equilibria in pure strategies? 2. Which basic game does it resemble?

image text in transcribed
Two companies must collaborate to develop a new product. They must choose between two products, product A or product B. While Company ABC has a patent for product A, Company XYZ has a patent for product B. If a product gets developed, the company without a patent must pay licensing fees of $200K. The companies' profits (in $1000) are as follows: Table 2: Product Innovation ' XYZ Product A Product B ABC Product A 300,100 0,0 | Product B 0,0 100,300 1. What are the equilibria in pure strategies? 2. Which basic game does it resemble

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