Suppose Microsoft and Celera are considering a joint venture to use con- sumers\

Question

Suppose Microsoft and Celera are considering a joint venture to use con- sumers' genetic fingerprints as license keys for software registration. How ever, in a joint venture there is always the possibility that one partner is trying to extract proprietary trade secrets from the other, rather than trying to earn a joint profit. Suppose that there are two possible types of Microsoft: Friend and Enemy. Microsoft knows its own type, but Celera knows only that the two types are equally likely. (a) Consider the following simultaneous game. Microsoft can “Invest" or "Sabotage" and Celera can "Reveal" or "Hide" its proprietary trade secrets. This game is shown in extensive form in the illustration that follows. Microsoft's payoffs are listed first. Translate this game into the 93 1 normal form. SE SF 0,3 8,-1 7, 0 9, 9 0,0 2,0 0,4

Explanation / Answer

Microsoft Enemy Celera Reveal Hide Invest 5 1 0 3 Sabotage 8 -1 7 0 Microsoft Friend Celera Reveal Hide Invest 9 9 0 0 Sabotage 2 0 0 4

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.