Below is a two player extensive game. Answer the following questions: 1. Write the game in its strategic form 2. Determine the set of all pure-strategy nash equilibria 3. Determine the set of all subgame perfect equilibria 4. Is there a unique subgame perfect equilibrium

Below is a two player extensive game. Answer the following questions: 1. Write the game in its strategic form 2. Determine the set of all pure-strategy nash equilibria 3. Determine the set of all subgame perfect equilibria 4. Is there a unique subgame perfect equilibrium

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 2E

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Step 1: Define Nash equilibrium

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Step 2: Write the game in strategic form

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Step 3: Find pure strategy Nash equilibrium point

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Step 4: Find sub game perfect Nash equilibrium point

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