Two software manufacturers are planning on each bringing a new software to the market, which are going to be incompatible with one another. If firms A and B each adopt their own software, they will get payoffs of 200. If firm A and B adopt firm A’s Software, A will get 400 and B zero profits and vice versa. If both were to adopt the other one’s software, they would each get zero profits.
This situation describes a scenario called “Tweedledum and Tweedledee”. In this case firms prefer to compete to determine the industry standard.