4 players (Alex, Boris, Cato, David) are on the reality show. The prize is 4 gold coins. Each coin cannot be divided into perts, so player can only win some integer number of coins. In the first stage Alex offer some sharing of 4 coins to players (for ex., 3 21 0). If strictly more than a half of players (accounting for the proposer) vote for this sharing then game ends and cach player takes the number of coins as in the offer. If a half of players or more vote against the sharing then Alex leave the island with O coins and then Boris offers a sharing of 4 coins across the rest 3 players and so on. If only David will survive, he will gain all 4 coins. Note0: player's payoff is equal to the number of coins he gets Notel: if some player in some vote is indifferent about the vote, he will vote against a sharing. Note2: each player is indifferent between leaving the island with 0 and staying on the island with an approved offer of 0 coins for him.
4 players (Alex, Boris, Cato, David) are on the reality show. The prize is 4 gold coins. Each coin cannot be divided into perts, so player can only win some integer number of coins. In the first stage Alex offer some sharing of 4 coins to players (for ex., 3 21 0). If strictly more than a half of players (accounting for the proposer) vote for this sharing then game ends and cach player takes the number of coins as in the offer. If a half of players or more vote against the sharing then Alex leave the island with O coins and then Boris offers a sharing of 4 coins across the rest 3 players and so on. If only David will survive, he will gain all 4 coins. Note0: player's payoff is equal to the number of coins he gets Notel: if some player in some vote is indifferent about the vote, he will vote against a sharing. Note2: each player is indifferent between leaving the island with 0 and staying on the island with an approved offer of 0 coins for him.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. Draw tree of the game clearly, handwritten is preferable.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education