Consider the following Extended Form Game: 0 1 02 O 3 A' 04 (9,5) A P2 P1 B' A' (5,2) (8,5) B A (1,6) P2 B' According to backwards induction, in how many turn does the game end? P1 B (6,7)
Consider the following Extended Form Game: 0 1 02 O 3 A' 04 (9,5) A P2 P1 B' A' (5,2) (8,5) B A (1,6) P2 B' According to backwards induction, in how many turn does the game end? P1 B (6,7)
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.15P
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Question 11
Consider the following Extended Form Game:
O 1
02
O 3
A'
04
(9,5)
A
P2
P1
B' A'
(5,2) (8,5)
B
x
A
(1,6)
P2
B'
According to backwards induction, in how many turn does the game end?
P1
B
(6,7)
Transcribed Image Text:Question 15
Consider the following Extended Form Game:
A'
(9,5)
A
P2
P1
B' A'
O {(A,B), (A', B')}
(5,2) (8,5)
B
A
(1,6)
What is the set of Nash Equilibria?
P2
B'
P1
B
(6,7)
O {(A,A), (A', A')).((A,B), (A', A')), ((A,A), (A', B')).((A,B), (A', B'))}
O (((B,A), (A', A')).((B,B), (A', A')), ((B,A), (A', B')).((B,B), (A', B'))}
O {(A,A), (A', A')).((A,B), (A', A')), ((A,A), (A', B')).((A,B), (A', B')), ((B,B)(B¹,B'))}
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