Question 1
4 pts
Techcorp manufactures mobile devices (smartphones and tablets). The company is considering launching a new phone. Techcorp can choose to launch a flagship phone, to launch a budget phone, or to have no launch.
Techcorp's main rival is Microbiz. If Techcorp launches a new phone, Microbiz can respond with a large advertising campaign, with a small advertising campaign, or with no campaign at all.
This sequential moves game is illustrated in the figure above. On each branch of the game tree, the first listed payoff belongs to Techcorp, and the second listed payoff belongs to Microbiz.