The president of Real Madrid thinks that he can do without several of the club's players. He
Question:
The president of Real Madrid thinks that he can do without several of the club's players. He has asked the coach, ZZ, and sporting director, EB, to try to sell two players before the end of June. ZZ and BB have three options: Ramos (R), Bale (B), and Marcelo (M), but they cannot agree on which one of the three should remain in the club. To reach an agreement, they will resort to the following mechanism. Firstly, EB (Player 1) will decide if he wants to get rid of Marcelo or Bale. Next, ZZ (Player 2), after observing the decision of EB, will choose who to eliminate from the set of remaining players. If Ramos stays, the utility of EB is 1, and that of ZZ is a. If Bale stays, the utility of both is 2. Finally, if Marcelo stays, the utility of EB is b and that of ZZ is 1, where a and b are positive integers.
What are the NE and SPNE when a=b=1?
South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781285438290
18th Edition
Authors: James Smith, William Raabe, David Maloney, James Young