Answered: (a) List all pure strategies of player…

(a) List all pure strategies of player 2. (b) Represent this game in normal form. (c) Find all pure-strategy Nash equilibria of this game.

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

PLEASE HANDWRITE!!!

NE 2). Consider the following extensive form game between two players.
(1,10)
u
D
1
A
B
X
Y
(a) List all pure strategies of player 2.
(b) Represent this game in normal form.
(c) Find all pure-strategy Nash equilibria of this game.
(d) Find all SPNE (in pure strategies) of this game.
(6,3)
-(4,2)
(5,1)

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Step 1: Introduction to Nash equilibrium:

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Step 2: a. List pure strategies for player 2:

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Step 3: Represent game in normal form:

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Step 4: Find all Nash Equilibrium Strategies:

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