Up Down Up Down Up Down Player 2 Player 1 In the game above, what is/are the EFFICIENT sub-game perfect Nash equilibrium? (up,up) (up.down) (down, up) (down, down) No EFFICIENT equilibrium exists P1 gets $25 P2 gets $15 P1 gets $10 P2 gets $10 P1 gets $15 P2 gets $5 P1 gets $15 P2 gets $25

Up Down Up Down Up Down Player 2 Player 1 In the game above, what is/are the EFFICIENT sub-game perfect Nash equilibrium? (up,up) (up.down) (down, up) (down, down) No EFFICIENT equilibrium exists P1 gets $25 P2 gets $15 P1 gets $10 P2 gets $10 P1 gets $15 P2 gets $5 P1 gets $15 P2 gets $25

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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Question

No written by hand solution

Up
Down
Up
Down
Up
Down
Player 2
Player 1
In the game above, what is/are the EFFICIENT sub-game perfect Nash equilibrium?
(up,up)
(up.down)
(down, up)
(down, down)
No EFFICIENT equilibrium exists
P1 gets $25
P2 gets $15
P1 gets $10
P2 gets $10
P1 gets $15
P2 gets $5
P1 gets $15
P2 gets $25

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