Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to select the same technology as Microsoft (because compatibility is important), while Microsoft always wants to select a different technology from its rival. If the two companies seleCt different technologies, Microsoft's payoff is 3 units of utility, while the sma I rival suffers a Wei of utility of 1. If the two companies select the same technology, Microsoft suffers a loss of utility of 1 while the nval gains 1 units of utility.

Using the given information, fill in the payoffs for each cell in the matrix, assuming that each company chooses its technology simultaneously.

True or False: There is an equilibrium for this game in pure strategies.

True

False

Rival Technology A Rival: Technology B Rival: Technology A Microsoft Microsoft Microsoft Rival: Rival: Technology B Microsoft Microsoft