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    competition vs. coordination

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    Suppose Microsoft can produce a new sophisticated software product. However, it wants to do so only if Intel produces high-speed microprocessors. Otherwise, the software will not sell. Intel, in turn, wants to produce high-speed microprocessors only if there is popular software on the market that requires high-speed processing. Is this a game of competition or coordination? What is the equilibrium?

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    https://brainmass.com/economics/general-equilibrium/competition-vs-coordination-24692

    Solution Preview

    This is a game of coordination.
    There are two Nash equilibria:
    If we start with Intel producing high-speed microprocessors, then Microsoft will sell the ...

    Solution Summary

    Is this a game of competition or coordination? What is the equilibrium?

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