Consider the following three-Player, extensive-form game- (-2,–1,2)а2b3Y+(-2,0,0)A(2,0,1)Y3(0,0,1)►(0,0,0)a(0,1,0)(1,1,1)a) Find all pure strategy Nash equilibria of this game.b) Find all pure strategy SPNE of this game.

We are going to solve for pure strategy nash equilibrium and subgame perfect nash equilibrium.

Consider the following three-Player, extensive-form game ,(-2,–1,2) а b 3 Y ►(-2,0,0) A (2,0,1) Y 3! - (0,0,1) В *(0,0,0) a (0,1,0) (1,1,1) a) Find all pure strategy Nash equilibria of this b) Find all pure strategy SPNE of this game. game.

Consider the following three-Player, extensive-form game ,(-2,–1,2) а b 3 Y ►(-2,0,0) A (2,0,1) Y 3! - (0,0,1) В *(0,0,0) a (0,1,0) (1,1,1) a) Find all pure strategy Nash equilibria of this b) Find all pure strategy SPNE of this game. game.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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Question

Consider the following three-Player, extensive-form game
- (-2,–1,2)
а
2
b
3
Y
+(-2,0,0)
A
(2,0,1)
Y
3
(0,0,1)
►(0,0,0)
a
(0,1,0)
(1,1,1)
a) Find all pure strategy Nash equilibria of this game.
b) Find all pure strategy SPNE of this game.

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