1 Remember the Exclusive Dealing Contract example presented in class Suppose that the equilibrium selection refinement used in case of multiplicity of Nash equilibria is the Pareto Dominance refinement a Characterize the SPNE by applying the Generalized Backward Induction procedure Show all your intermediate steps b Provide intuitive interpretation of your results 1 Remember the Exclusive Dealing Contract example presented in class Suppose that the equilibrium selection refinement used in case of multiplicity of Nash equilibria is the Pareto Dominance refinement a Characterize the SPNE by applying the Generalized Backward Induction procedure Show all your intermediate steps b Provide intuitive interpretation of your results

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Question: 1. Remember the Exclusive-Dealing Contract example presented in class. Suppose that the equilibrium selection refinement used in case of multiplicity of Nash equilibria is the

1. Remember the Exclusive-Dealing Contract example presented in class. Suppose that

1. Remember the Exclusive-Dealing Contract example presented in class. Suppose that the equilibrium selection refinement used in case of multiplicity of Nash equilibria is the Pareto-Dominance refinement. a. Characterize the SPNE by applying the Generalized Backward Induction procedure. Show all your intermediate steps. b. Provide intuitive interpretation of your results.

the equilibrium selection refinement used in case of multiplicity of Nash equilibria

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