Q1 in centipede there are two players player 1 moves first

Assignment Help Business Economics

Reference no: EM13355249

Q1 In centipede there are two players. Player 1 moves first, player 2 moves second. After at most two moves, the game ends. The game begins with $1 sitting on a table. Player 1 can either take the $1 or wait. If player 1 takes the $1 the game is over, and player 1 gets to keep the $1. If player 1 waits the $1 quadruples to $4. Now it is player 2's turn. Player 2 can either take the entire $4 or split the $4 evenly with player 1.

a. draw the extensive form for the game of centipede

b. Illustrate what is the equilibrium to this game? Can player 2's strategy of splitting the money ever is part of an equilibrium outcome to the game?

c. Now Assume that centipede has three moves. Player 2 cannot wait, split the money or take the $4. If player 2 waits then the money on the table quadruples again and player 1 can either take it all or split it. Draw the extensive form for the new game and solve for the equilibrium outcome.

Reference no: EM13355249

Questions Cloud

Qnow you want to improve the aggregate production function : q.now you want to improve the aggregate production function to increase the provide capacity of the economy. that is

Q1 immediately following the attack on the united states on : q1. immediately following the attack on the united states on september 11 2001 the stock plunged and many observers

Q for all qualitative non-numerical graphs be sure to label : q. for all qualitative non-numerical graphs be sure to label all curves and axes carefully. explain how both initial

Q1 illustrate what are the basic steps in solving for : q1. illustrate what are the basic steps in solving for walras equilibrium with two consumers and two commodities given

Q1 in centipede there are two players player 1 moves first : q1 in centipede there are two players. player 1 moves first player 2 moves second. after at most two moves the game

Q1 a budget deficit that is only temporary cannot be the : q1. a budget deficit that is only temporary cannot be the source of inflation. is this statement true false or

Q 1 illustrate what are the different measures of the : q. 1. illustrate what are the different measures of the national income? explain how this information is usually

Q1 if the economy currently has a frictional unemployment : q1. if the economy currently has a frictional unemployment rate of 2 percent structural unemployment of 2 seasonal

Q consider the following data on us gdpyear nominal gdp : q. consider the following data on us gdp.year nominal gdp billions gdp deflator base year19962000 9873 1183 1999 9269

User Account

All Pages