Answered: P1 P2 P2 A, B D P1 (6, 2) (5, 2) (1, 4)…

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P1 P2 P2 A, B D P1 (6, 2) (5, 2) (1, 4) (2, 0) (3, 3)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Try to solve the following Extensive-form game by Backward Induction, then covert them into normal-form and find the Pure-strategy Nash equilibria in Normal form.

P1
P2
P2
A,
B
D
P1
(6, 2)
(5, 2)
(1, 4)
(2, 0) (3, 3)

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