. If the backwards-induction outcome is denoted (a₁, R₂(a)), how do we denote the subgame-perfect Nash equilibrium? a. (a₁, R₂(a₁)) b. (a₁, R₂(a)) c. (a₁, a₂, R3(a₁, A₂), R₁(a₁, a₂)) (a₁, a₂, R3(a₁, až), R₁(a₁, až)) d.

. If the backwards-induction outcome is denoted (a₁, R₂(a)), how do we denote the subgame-perfect Nash equilibrium? a. (a₁, R₂(a₁)) b. (a₁, R₂(a)) c. (a₁, a₂, R3(a₁, A₂), R₁(a₁, a₂)) (a₁, a₂, R3(a₁, až), R₁(a₁, až)) d.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

27. If the backwards-induction outcome is denoted (a₁, R₂(a₁)), how do we denote the
subgame-perfect Nash equilibrium?
a. (a₁, R₂(a₁))
b.
(a₁, R₂(a₁))
c. (a₁, a₂, R3(a₁, A₂), R₁(α₁, A₂))
d. (a₁, a₂, R3(a₁, a₂), R₁ (a₁, a₂))

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