Draw the extensive form for the following game

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Reference no: EM131390907

Draw the extensive form for the following game (invent your own payoffvectors, because I give you no payoff information). There is an industry inwhich two firms compete as follows: First, firm 1 decides whether to set ahigh price (H) or a low price (L). After seeing firm 1's price, firm 2 decideswhether to set a high price (H) or a low price (L). If both firms selected thelow price, then the game ends with no further interaction. If either or bothfirms selected the high price, then the attorney general decides whether toprosecute (P) or not (N) for anticompetitive behavior. In this case, the attor-ney general does not observe which firm selected the high price (or if bothfirms selected the high price).

Reference no: EM131390907

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