Question: Now Suppose that because it had planned to include Blu-ray technology in its game console (the PlayStation 3), Sony had already incurred (sunk) $200M of
Now Suppose that because it had planned to include Blu-ray technology in its game console (the PlayStation 3), Sony had already incurred (sunk) $200M of the $300 development cost of its Blu-ray technology by the time the battle with Toshiba began. How would this affect the payoffs in the game and/or the Nash equilibrium (equilibria)? Group of answer choices Both companies have a dominant strategy now, and the equilibrium of the game is (Blu-ray, HD-DVD). Both companies have a dominant strategy now, and the equilibrium of the game is (No new technology, No new technology). Toshiba has a dominant strategy now, and the new equilibrium is (No new technology, HD-DVD). Sony has a dominant strategy now, and the new equilibrium is (Blu-ray, No new technology). The outcome(s) of the game would be the same as before
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