ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
What is the equilibrium to Game 2?
Group of answer choices:
US punishes with sanctions, Iran retaliates
US punishes with sanctions, Iran backs down
US proposes compromise, Iran accepts
US proposes compromise, Iran accelerates nuclear effort, US backs down
US proposes compromise, Iran accelerates nuclear effort, US conducts an air strike
 
2. In Game 2, what is the highest value of X the US would ever consider offering? Why?
 
Game 2
US
Punish with
Propose
Compromise
Sanctions
Iran
Iran
Back
Ассept
compromise
Accelerate
nuclear effort
Retaliate
down
US
1
.6
Вack
down
1- X
Air
.3
strike
.5
1
.1
expand button
Transcribed Image Text:Game 2 US Punish with Propose Compromise Sanctions Iran Iran Back Ассept compromise Accelerate nuclear effort Retaliate down US 1 .6 Вack down 1- X Air .3 strike .5 1 .1
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