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 6 units of utility, while the small rival suffers alossof utility of 3. If the two companies select the same technology, Microsoft suffers alossof utility of 3 while the rival gains 3 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.

MicrosoftTechnology ATechnology BRivalTechnology ARival:,MicrosoftRival:,MicrosoftTechnology BRival:,MicrosoftRival:,MicrosoftTrue or False: There is no equilibrium in pure strategies.

True

False

3. Individual Problems 15-3 Microsoft and a smaller rival oen 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 6 units of utility, while the small rival suffers a loss of utility of 3. If the two companies select the same technology, Microsoft suffers a loss of utility of 3 while the rival gains 3 units of utility. Using the given information, ll in the payoffs for each cell in the matrix, assuming that each company chooses its technology simultaneously. Microsoft Technology A Technology B _ Technology A Rival: _ . Microsoft _ Rival: _ . Microsoft _ Rival Technology B Rival: . Microsoft Rival: . Microsoft True or False: There is no equilibrium in pure strategies. True " False