Consider the following game between Sony, a manufacturer of video cassette players, and Columbia Pictures, a movie studio. Each firm must decide whether to use the VHS or Beta format-Sony to make video players, Columbia to release its movies for rental or purchase.
a) Restrict attention to pure strategies. Does either firm have a dominant strategy? What is (are) the Nash equilibrium (equilibria) of this game?
b) Is there a mixed strategy Nash equilibrium in this game? If so, what is it?
c) Restrict attention again to pure strategies, but now focus on a sequential-move game in which Sony chooses its strategy first. What is (are) the Nash equilibrium (equilibria) of this game?