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?© BrainMass Inc. brainmass.com March 4, 2021, 6:02 pm ad1c9bdddf
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 ...
Is this a game of competition or coordination? What is the equilibrium?