Reference no: EM133065457

Consider the following Trust Game. Player A B B B A B B A B ABA A A has $100 and chooses whether to give some of the money to Player or not. To keep it simple, he can either give $50 or $0. If he gives up $50, then magically receives $150 (maybe think of it as an investment that profits from). If gave $50 (which turned into $150), then Player has the choice to give back either $75 or $0. Therefore, the strategy space for is {0, 50} and the strategy space for is {75, 0}. 's payoff is either $100 (if she keeps it all), $50 (if she gives half and receives nothing back), or $125 (if she gives half and receives money back). 's payoff is either $0 (if keeps it all), $150 (if gives half and he gives nothing back), or $75 (if gives half and he gives money back). Solve for all pure strategy and mixed strategy Nash Equilibrium.