Apple and Microsoft are competing over computer operating systems. Each can target their product to business or personal market. Apple will announce their new operating system before Microsoft decided on their operating systems next features. If Apple focuses on the personal market and Microsoft focuses on business Apple earns 100 million and Microsoft 150 million. If Microsoft focus on personal and Apple focuses on business Microsoft earns 90 million and Apple 200 million. If both focus on the personal market each earns 115 million and if both focus on the business market they each earn 125 million. Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both
Apple and Microsoft are competing over computer operating systems. Each can target their product to business or personal market. Apple will announce their new operating system before Microsoft decided on their operating systems next features. If Apple focuses on the personal market and Microsoft focuses on business Apple earns 100 million and Microsoft 150 million. If Microsoft focus on personal and Apple focuses on business Microsoft earns 90 million and Apple 200 million. If both focus on the personal market each earns 115 million and if both focus on the business market they each earn 125 million.
Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both.
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