Problem 3 Consider the following simultaneous normal form game: P.2 R P R 0,0 -1,1 1, -1 P.1 P 1, -1 0,0 -1, 1 -1, 1 1, -1 0,0 Now assume the game is not simultaneous and player 1 gets to play first. Create a game tree that represents the sequential game. Also, name each node, define the set of information sets for each player, show which nodes are in which information set and add define action sets at each info set.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
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Chapter8: Game Theory
Section: Chapter Questions
Problem 8.9P
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Problem 3
Consider the following simultaneous normal form game:
P.2
R
0,0
-1, 1
1, -1
P.1
P
1, -1
0,0
-1, 1
S
-1, 1
1, -1
0,0
Now assume the game is not simultaneous and player 1 gets to play first. Create a game tree that
represents the sequential game. Also, name each node, define the set of information sets for each
player, show which nodes are in which information set and add define action sets at each info set.
Transcribed Image Text:Problem 3 Consider the following simultaneous normal form game: P.2 R 0,0 -1, 1 1, -1 P.1 P 1, -1 0,0 -1, 1 S -1, 1 1, -1 0,0 Now assume the game is not simultaneous and player 1 gets to play first. Create a game tree that represents the sequential game. Also, name each node, define the set of information sets for each player, show which nodes are in which information set and add define action sets at each info set.
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