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Question: Alice and Bob are deciding where to order the food for lunch. Alice chooses whether going to Burger King or McDonald. Bob chooses whether having a cheese burger or a chicken sandwich.
Alice's preference ranking is Burger King cheese burger ? McDonald Chicken sandwich ∼McDonald cheese burger ? Burger King chicken sandwich Bob's preference ranking is Burger King chicken sandwich ∼McDonald cheese burger
Burger King cheese burger ? McDonald Chicken sandwich
a) Assume Bob choosing what food to have after observing Alice's choice of restaurant. Write a complete extensive form game ( you need to assign and specify payoff/utility of each outcome according to their preference)
b) Assume Bob and Alice making choice simultaneously. How is the extensive form going be different?
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