SigmaSoft and ThetaTech are the dominant makers of computer system software. The market has two components: a large mass-market component in which demand is price sensitive, and a smaller performance-oriented component in which demand is much less price sensitive. SigmaSoft's product is considered to be technically superior. Each company can choose one of two strategies: 

1. Open architecture (Open): Mass-market focus allowing other software vendors to develop products for its platform. 

2. Proprietary (Prop): Allowing only its own software applications to run on its platform. Depending on the strategy each company selects, their profits would be:

The Nash equilibrium for these companies is:
A. proprietary for SigmaSoft and proprietary for ThetaTech.
B. open architecture for SigmaSoft and proprietary for ThetaTech.
C. proprietary for SigmaSoft and open architecture for ThetaTech.

Transcribed Image Text:

SigmaSoft-Open SigmaSoft-Prop 650 600 400 Theta Tech-Open SigmaSoft-Open 800 700 Theta Tech-Open SigmaSoft-Prop 600 300 TheraTech-Prop 400 Theta Tech-Prop