Kiplinger and Intuit are two rival firms in the tax- software industry. Each faces a choice for
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a. Identify the Nash equilibria of this game, if any exist.
b. Suppose a uniquely talented programmer exists who would enable her employer to bring its product to market before the employer€™s rival even had a chance to choose its development strategy. Either firm€™s failure to hire this programmer will result in her being hired by the other. If the programmer€™s decision rule is to work for the highest bidder and both firms are rational profit-maximizers, for whom will the programmer work, and how much will she bepaid?
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a Kiplinger has a dominant strategy to go comprehensive and Intuit does not have a domi...View the full answer
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