See the extensive form game in the image attached (the payoffs of player 1 are written on top and the payoffs of player 2 are on the bottom).  a) Write this game in normal form (a player's strategy is a complete contingent plan that tells them what to play at each of their information sets) (b) Find all the Nash equilibria of the normal form game from part (a)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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See the extensive form game in the image attached (the payoffs of player 1 are written on top and the payoffs of player 2 are on the bottom). 

a) Write this game in normal form (a player's strategy is a complete contingent plan that tells them what to play at each of their information sets)


(b) Find all the Nash equilibria of the normal form game from part (a)

b
2
R
y
y
3/2
3/2
O O
O O
Transcribed Image Text:b 2 R y y 3/2 3/2 O O O O
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