What payoff would Sony get if it chose to switch to HD DVD and Toshiba chose to produce HD DVD?
In 2006, there were a number of media reports about the next generation of DVD players, which produce much clearer picture and sound than that produced by current machines. However, there are two competing formats, Blu-ray (Sony) and HD DVD (Toshiba). Both are affiliated with certain movie studios, which have agreed to release their movies in one or the other of the new formats. This creates a problem for the producers of this new technology—they all want their own version to win out, but by competing they make it entirely likely that most consumers will sit back and wait until (a) one of the formats is a clear winner or (b) a newer, even better, method of supplying movies is developed by someone else. If the latter happens, both Sony and Toshiba lose out.
Imagine that both companies have developed a new product, but with different formats. If one of the companies would be willing to switch quickly (assume that copyright laws would allow it to produce something similar), that company would lose some time and market share but be able to get into the market. Consumers would be more willing to buy the new technology, and both companies would make more money. If neither company is willing to coordinate with the other, they end up in a war of attrition, with fewer customers. This is shown in the game below.
A. 1.
B. 2.
C. 3.
D. 4.
C. 3.
You might also like to view...
Scott entered into a contract with Nadine to landscape her yard. When Scott completed the job, Nadine refused to pay, claiming the work was not done properly because the wrong plants were used and the job was not finished on time. Scott brought suit against Nadine to collect the amount due. If Nadine wished to raise the defense that the work was performed improperly, in what legal document will
she state her defense? a. Answer c. Reply b. Complaint d. Summons
Tamir et al. (2008) conducted a study to see what impact music has on participants playing computer games. The researchers had participants play computer games while listening to angry, exciting, and neutral music. The researchers then measured the participant's performance while listening to each type of music. Which of the following is a disadvantage of this type of research design?
a. fewer participants b. less statistical variance c. equal group sizes d. fatigue
The tobacco lobby before 1960 owed much of its strength to
a. its nationwide influence on agricultural politics. b. tobacco’s status as a major product in a region represented by a number of powerful members of Congress. c. its impressive data showing smoking to be harmless. d. the lack of any information suggesting health hazards of smoking.
The new deal was based on economist John Maynard Keyenes's argument that ______ spending by the government was needed to stimulate the economy during economic downturns
A.) less B.) no C.) more