Develop an extensive form game with imperfect information

Reference no: EM132130922

Topics - Mergers & Acquisition, Capital Structure, Stock Trading etc.

Q1. Develop an extensive form game with imperfect information (in which one of the players can be two or more types) that models any stylized economics or finance problems (i.e. interaction between economic agents) and find a non-trivial Sequential Equilibrium. Answer should include the following details:

1. Description of the problem

2. Clearly Stated assumptions (connected to the problem)

3. The model set up which includes- the players strategy space, information sets, payoff functions and sequence of events

4. Model solution - Including briefing and strategies outside of equilibrium path, IF ANY

Q2. Repeat Q1, but now use either extensive form game with imperfect information (and solve for subgame perfect Nash equilibrium) or strategic game with imperfect information and find Baynesian Equilibrium.

Reference no: EM132130922

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