3. Consider the following game in extensive form X- Playert + Player 2 D. (a) What is the normal form of the game? (b) What are the Nash equilibria of the game? Is there any sub-game perfect Nash equilibrium? If the answer is yes, what is the sub-game perfect Nash equilibrium? (c) Suppose now that Player 2 cannot observe the move made by Player 1. Draw the game tree, and then find the perfect Bayesian equilibrium.

3. Consider the following game in extensive form X- Playert + Player 2 D. (a) What is the normal form of the game? (b) What are the Nash equilibria of the game? Is there any sub-game perfect Nash equilibrium? If the answer is yes, what is the sub-game perfect Nash equilibrium? (c) Suppose now that Player 2 cannot observe the move made by Player 1. Draw the game tree, and then find the perfect Bayesian equilibrium.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5CQQ

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