► 0, 0 - 1, 1 → 1, – 1 R 1, – 1 ► 0, 0 > → - 1, 1 - 1, 1 P. 1, – 1 → 0, 0 O There are 4 players. O Player 2's strategy space is different from Player 1's There are 9 possible strategy profiles. When Player 2 is going to make her decision, she knows exactly what decision Player 1 makes.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Which one of the following descriptions is correct according to this extensive form? (I think it's 3rd option but unsure) 

► 0, 0
- 1, 1
→ 1, – 1
R
1, – 1
►
0, 0
>
→ - 1, 1
- 1, 1
P.
1, – 1
→ 0, 0
O There are 4 players.
O Player 2's strategy space is different from Player 1's
There are 9 possible strategy profiles.
When Player 2 is going to make her decision, she knows exactly what decision Player
1 makes.
Transcribed Image Text:► 0, 0 - 1, 1 → 1, – 1 R 1, – 1 ► 0, 0 > → - 1, 1 - 1, 1 P. 1, – 1 → 0, 0 O There are 4 players. O Player 2's strategy space is different from Player 1's There are 9 possible strategy profiles. When Player 2 is going to make her decision, she knows exactly what decision Player 1 makes.
Expert Solution
Step 1

Given:

An extensive form game with two players: player 1 and player 2. Each player can choose from three strategies: R, P and S. The extensive form game is used in the situations in which the second player does not know the move of the first player.

Step 2

There are a total of 9 possible strategy profiles:

(R,R), (R,P), (R,S), (P,R), (P,P), (P,S), (S,R), (S,P) and (S,S).

The strategy on the left is choosen by player 1 and the strategy on right is choosen by player 2. There are a total of 9 possible combinations of different strategies. So, there are 9 different strategy profiles.

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education