The trust game is a two player game with three stages, often used in economics exper- iments to measure trust and trustworthiness. Player 1 starts off with 10 Dollars. She can send an amoun0≤x≤ 10 to player 2. The experimenter triples the sent amount such that player 2 receives 3x. Player 2 can then send an amount 0 ≤ y ≤ 3r to player 1. (a) Draw a diagram of the extensive form of this game. (b) Find all the SPNE in the trust game. (c) Why is this game used to measure trust and trustworthiness? Do you think it provides reasonable measures? How would you interpret reciprocity in this game? How would you detect it? What is trust? Come up with a operational definition.

The trust game is a two player game with three stages, often used in economics exper- iments to measure trust and trustworthiness. Player 1 starts off with 10 Dollars. She can send an amoun0≤x≤ 10 to player 2. The experimenter triples the sent amount such that player 2 receives 3x. Player 2 can then send an amount 0 ≤ y ≤ 3r to player 1. (a) Draw a diagram of the extensive form of this game. (b) Find all the SPNE in the trust game. (c) Why is this game used to measure trust and trustworthiness? Do you think it provides reasonable measures? How would you interpret reciprocity in this game? How would you detect it? What is trust? Come up with a operational definition.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter18: Auctions

Section: Chapter Questions

Problem 18.1IP

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There are 2 players. They take Ston eS From the Pilt of 6 Stones. Player 1 can takt only 2 or 3 Stones. piayer 2 can taKeS only 2 or 4 StonesS. P layers take turns, observe dil Previous moves, and player 1 mover first. A pla yer loses if She can not make a legal move, While another player ir declared the Winner. Let the pay oF OF Winning egval to 1 and the payoFF OF losing equal to 0. a) represent the in ɛxtemsive Form (depict Only legalmoes) b) Find all SPNE OF this game& explain your a mwwer. Who Will Win ? game Only legalmar)
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learn.canterbury.ac.nz Clasarsom Nov 15-ICO EUC LEARN | AKO See the game below and answer the questions 8 to 11: Player-1 C Player-2 X, Y Y Player-1 9 14 8. Player-2 16 17 16 Nash Equilibrium in this game: Select one: O a. Playert: C; Player2: X O b. Playert: C; Player2: Y Oc. Playert: L; Player2: X Od. Playert: L; Player2: Y e. None
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