It is the week before the Yule Ball Dance, and Victor and Ron are each contemplating whether to ask Hermione to the dance. The game tree above represents this interaction. Answer the following questions accordingly. i. There are subgames, including the whole game itself. (Note: As we did in class, count the single (terminal) decision nodes as subgames as well.) ii Victor has information set(s) Hermione has + information set(s)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Options for iii are "knows" and "doesn't know"

Ask
Victor
Ron
8
3
Hermione 6
00
Yes
Ask
7
6
5
Do not
ask
Yes
1
8
8
Victor
Hermione
No
Ask
Hermione
No
324
Ron
Do not
ask
Do not
ask
253
Yes
477
Ask
Hermione
No
Ron
6
1
2
Do not
ask
5
4
1
Transcribed Image Text:Ask Victor Ron 8 3 Hermione 6 00 Yes Ask 7 6 5 Do not ask Yes 1 8 8 Victor Hermione No Ask Hermione No 324 Ron Do not ask Do not ask 253 Yes 477 Ask Hermione No Ron 6 1 2 Do not ask 5 4 1
It is the week before the Yule Ball Dance, and Victor and Ron are each contemplating
whether to ask Hermione to the dance. The game tree above represents this
interaction. Answer the following questions accordingly.
i. There are
◆ subgames, including the whole game itself. (Note: As we did in
class, count the single (terminal) decision nodes as subgames as well.)
information set(s), Hermione has
information set(s),
◆ information set(s). (Recall: An information set can contain one or
ii. Victor has
Ron has
more decision nodes.)
iii. Before he decides whether to ask Hermione, Ron
Victor asked Hermione. If Victor did invite Hermione, Ron
Hermione's answer to Victor before he decides whether to ask Hermione himself.
◆
whether
Transcribed Image Text:It is the week before the Yule Ball Dance, and Victor and Ron are each contemplating whether to ask Hermione to the dance. The game tree above represents this interaction. Answer the following questions accordingly. i. There are ◆ subgames, including the whole game itself. (Note: As we did in class, count the single (terminal) decision nodes as subgames as well.) information set(s), Hermione has information set(s), ◆ information set(s). (Recall: An information set can contain one or ii. Victor has Ron has more decision nodes.) iii. Before he decides whether to ask Hermione, Ron Victor asked Hermione. If Victor did invite Hermione, Ron Hermione's answer to Victor before he decides whether to ask Hermione himself. ◆ whether
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