QUESTION 30

This is a sequential game with two players A and B.In this game a dime is put on the table. A can take it or pass. If A takes a dime, the gameends; if A passes, then B can take 2 dimes or pass; if B takes 2 dimes, the gameends;if B passes, then A can take 3 dimes or pass;and so on until a choiceof a dollar. This processis shown in the game tree below. The rollback equilibrium of this game is thatB is sure to take the dollar at last round, so A shouldtake 90 at the penultimate stage, and so on. Thus, A should take thefirst dime and end the game.

QUESTION 30 3 points Save Answer This is a sequential game with two players A and B. In this game a dime is put on the table. A can take it or pass. If A takes a dime, the game ends; if A passes, then B can take 2 dimes or pass; if B takes 2 dimes, the game ends; if B passes, then A can take 3 dimes or pass; and so on until a choice of a dollar. This process is shown in the game tree below. The rollback equilibrium of this game is that B is sure to take the dollar at last round, so A should take 90c at the penultimate stage, and so on. Thus, A should take the first dime and end the game. A Pass B Pass A Pass B Pass B Pass 0, 0 Take Take Take Take Take Dime Dimes Dimes Dimes Dimes 10. 0 0. 20 30. 0 0. 40 0, 100 O True False