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 their 2019 model high definition

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: Sony's technology Alpha Beta A Zenith's technology Alpha B Beta $16, $12 $13, $15 $9, $8 Payoffs in billions of dollars of profits D $11, $10 Suppose the technology decision will be made sequentially, and Zenith makes a strategic commitment to one of the technologies so that Zenith can make the first move. Zenith will choose choose and Sony will

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