Question: Sony and Zenith must each decide which technology to utilize in building their 2019 model high definition television (HDTV) sets: either Alpha technology or

Sony and Zenith must each decide which technology to utilize in building

Sony and Zenith must each decide which technology to utilize in building their 2019 model high definition television (HDTV) sets: either Alpha technology or Beta technology. Sony has a technological advantage in using Alpha technology and Zenith has a technological advantage in using Beta technology. The payoff table below shows the profit outcomes for both firms in the various possible technology choice outcomes: Zenith's technology Alpha Beta A B Alpha Sony's technology $16, $12 $11, $10 C D Beta $9, $8 $13, $15 Payoffs in billions of dollars of profits Suppose the technology decision will be made sequentially, and Sony makes a strategic commitment to one of the technologies so that Sony can make the first move. Sony will choose will choose and Zenith

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