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The following game matrix shows the strategies and payoffs to Sony and Philips as they choose what connection technology to offer on their televisions.
Philip's Strategy
Offer HDMI
Offer S-video
Sony's Strategy
Sony gets $22
Philips gets $33
Philips gets $13
Sony gets $10
Sony gets $30
Philips gets $17
Philips gets $20
a. What is game theory? What is a Nash Equilibrium?
b. What is the dominant strategy, if any, for Sony? Why?
c. What is the dominant strategy, if any, for Philips? Why?
d. What is the Nash equilibrium or Nash equilibriums in this game? Why? Be sure to explain your reasoning to receive full credit.
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