ECON$-$E $321$

Dr$.$ Pollak

Intermediate Microeconomic Theory

Fall $2024$

Question $3$

Consider a game between two players: Older Brother and Younger Brother. The payoff matrix below represents the strategy, outcomes and payoffs for this game. Older Brother can choose to tease $($T$)$ or do not tease $($NT$).$ Younger Brother can choose to react $($R$)$ or not react $($NR$).$ They both must decide their action simultaneously. In the matrix, the first entry in each box is the payoff to the Older Brother and the second entry is the payoff to the Younger Brother.

$\backslash$table$[[,$Younger Brother$],[$Older Brother,Tease $($T$),100,-50,-50,-100$