Game: Extensive Form. Suppose player 1 chooses G or H, and player 2 observes this choice. If
Question:
Game: Extensive Form. Suppose player 1 chooses G or H, and player 2 observes this choice. If player 1 chooses H, then player 2 must choose A or B. Player 1 does not get to observe this choice by player 2, and must then choose X or Y. If A and X are played, the payoff for player 1 is 1 and for player 2 it's 5. If A and Y are played, the payoff for player 1 is 6 and for player 2 it's 0. If B and X are played, the payoff for player 1 is 5 and for player 2 it's 2. And if B and Y are played, the payoff for player 1 is 3 and for player 2 it's 4. Going back to the beginning of the game, if player 1 plays G, player 2 must choose C or D. If player 2 plays D, the payoff for player 1 is 3 and for player 2 it's 2. If player 2 plays C, player 1 observes that choice and must choose R or S. If player 1 chooses R, the payoff for player 1 is 3 and for player 2 it's 6. If player 1 chooses S, the payoff for player 1 is 4 and for player 2 it's 3.
A.. Refer to Game: Extensive Form. Draw the extensive form of the game.
B. Refer to Game: Extensive Form. Identify all subgame perfect Nash equilibria.
C. Refer to Game: Extensive Form. Draw the normal form of the game.
D. Refer to Game: Extensive Form. Identify all pure strategy Nash equilibria
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba