Question: Storage Wars (Forever) Microsoft (OneDrive) and Dropbox must select storage amounts for their free accounts. As storage is costly, their profits will depend on how

 Storage Wars (Forever) Microsoft (OneDrive) and Dropbox must select storage amounts

Storage Wars (Forever) Microsoft (OneDrive) and Dropbox must select storage amounts for their "free" accounts. As storage is costly, their profits will depend on how much storage they offer, and what their rival is offering. Payoffs are: (Dropbox, OneDrive). ITS 4020 HW 47 Due Sunday, February 19. 10 points. This time, the game is played "forever." Dropbox adopts the following trigger strategy: "Dropbox will start by playing 500GB and play 500GB as long a OneDrive plays 500GB. If OneDrive ever plays 1TB or 2TB, then Dropbox will play 2TB forever after." Assume that the interest rate (i) is 10%. What is OneDrive's payoff if it chooses a strategy to always: (1) Play 500GB. (2) Play 1TB. (3) Play 2TB. Show all work

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