you have developed a new computer operating system and are considering whether you should enter the market and compete with microsoft. microsoft has the option of offering their operating system for a high price or a low price. once microsoft selects a price, you will decide whether you want to enter the market or not enter the market. if microsoft charges a high price and you enter, microsoft will earn $30 million and you will earn $10 million. if microsoft charges a high price and you do not enter, microsoft will earn $60 million and you will earn $0. if microsoft charges a low price and you enter, microsoft will earn $20 million and you will lose $5 million. if microsoft charges a low price and you do not enter, microsoft will earn $50 million and you will earn $0. Contruct a payoff table and find the Nash equilibrium if you and microsoft both make your decisions simultaniously. In a simultaneous move game, Microsoft will and you will:___________
- in simultanious move game, micorosoft will (charge a high price / charge a low price?) and you will ( not enter the market / enter the market?)
- now suppose that micoroft selects a price first (cant attach the question) you will enter (cant attach the question) tree for this squential move game. this part is not graded, but you will need to make the game tree on your own to answer the following question