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Use the following information to answer the next 4 questions. Sony and Samsung must each decide which technology to utilize in building their new smart
Use the following information to answer the next questions.
Sony and Samsung must each decide which technology to utilize in building their new smart television sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Samsung 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:
Samsung's technology
Alpha Beta
Sony's
technology Alpha A
$ $ B
$ $
Beta C
$ $ D
$ $
Payoffs in billions of dollars of profits
Question points
Suppose that the technology decision must be made simultaneously. Which cells are Nash equilibrium cells
Question options:
Cell A
Cell D
Cells A and D
Cells B and C
None of the cells are Nash equilibria.
Question points
Suppose that the technology decision will be made sequentially, and Sony makes a strategic commitment to one of the technologies so that Sony makes the first move. Sony will choose and Samsung will choose
Question options:
Alpha; Alpha
Alpha; Beta
Beta; Alpha
Beta; Beta
Question points
Suppose that the technology decision will be made sequentially, and Samsung makes a strategic commitment to one of the technologies so that Samsung makes the first move. Samsung will choose and Sony will choose
Question options:
Alpha; Alpha
Alpha; Beta
Beta; Alpha
Beta; Beta
Question points
Does either firm have a firstmover advantage?
Question options:
Yes, Sony has a firstmover advantage; Samsung does not.
Yes, Samsung has a firstmover advantage; Sony does not.
Both Sony and Samsung have firstmover advantages.
Neither Sony nor Samsung have firstmover advantages.
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