Is the game an example of the prisoners dilemma

Reference no: EM13204675

Nintendo and Sony Playstation are each planning to introduce one new game into the market. Each is considering three different kinds of games: an urban action game like Grand Theft Auto, an adventure game like Tomb Raiders, or a strategy game like Sim City. The table below shows each firm's profits (Sony's profit first) in millions of dollars:

Nintendo
Sony Grand Theft Tomb Raiders Sim City
Grand theft 2,2 7,3 8,4
Tomb Raiders 3,10 -3,-3 1,2
Sim City 4,8 2,1 -7,-7

a. Assuming the firms act independently, find the equilibrium outcome. Briefly, explain your answer. Is this game an example of the prisoner's dilemma?

b. Nintendo knows for a fact that Sony will not decide on its new project for four months. As CEO of Nintendo, what would you do immediately based on the analysis above?

c. If the firms were free to coordinate their

Reference no: EM13204675

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