Determine subgame-perfect equilibrium

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Reference no: EM1348103

Q1) Three gangsters armed with pistols, Al, Bob, and Curly, are in room with suitcase of money. Al, Bob, and Curly have 20%, 40% and 70% chances of killing their target, respectively. Each has one bullet. First Al shoots targeting one of the other two gangster. After Al, if alive, Bob shoots, targeting one of the surviving gangsters. Finally, if alive, Curly shoots, targeting again one of the surviving gangsters. Survivors split money equally. Determine subgame-perfect equilibrium.

Reference no: EM1348103

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