Consider the following game depicting the process of standard setting in high-definition television (HDTV).

High

(3,2)

(1,1)

a)   Are there any dominant strategies in this game? What is the Nash equilibrium of the game?                                                                                                               

b)   Suppose now that the US has the option of committing to a strategy before Japan's decision is reached. Model this situation by a game tree and solve it by backward induction                                                                                                          

Comparing the answers in (a) and (b), what can you say about the value of commitment for the United States?