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Problem 3 - The Perfect Subgame Find the set of pure strategy Nash equilibria and subgame perfect equilibria of the following game: Out In 0, 20 F A F A F A -5, -5 -1,8 8,5 10, 10

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 3MC

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Question

Problem 3 - The Perfect Subgame
Find the set of pure strategy Nash equilibria and subgame perfect equilibria of the following
game:
Out
In
0, 20
F
A
F
A
F
A
-5, -5
-1,8
8,5
10, 10

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