The second image contains the game information. The grenade game is a member of the following class of simple games of complete and perfect information:1. Player 1 chooses an action $a_1$ from the feasible set $A_1$.2. Player 2 observes $a_1$ and then chooses an action $a_2$ from the feasible set $A_2$.3. Payoffs are $u_1(a_1, a_2)$ and $u_2(a_1, a_2)$. **Question 2.21:**Provide the extensive-form and normal-form representations of the grenade game as described in Section 2.1. Identify the pure-strategy Nash equilibria. Determine the backwards-induction outcome. What is the subgame-perfect Nash equilibrium?

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2.21. Give the extensive-form and normal-form representations of the grenade game described in Section 2.1. What are the pure- strategy Nash equilibria? What is the backwards-induction out- come? What is the subgame-perfect Nash equilibrium?

2.21. Give the extensive-form and normal-form representations of the grenade game described in Section 2.1. What are the pure- strategy Nash equilibria? What is the backwards-induction out- come? What is the subgame-perfect Nash equilibrium?

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

The second image contains the game information.

The grenade game is a member of the following class of simple games of complete and perfect information:

1. Player 1 chooses an action $a_1$ from the feasible set $A_1$.

2. Player 2 observes $a_1$ and then chooses an action $a_2$ from the feasible set $A_2$.

3. Payoffs are $u_1(a_1, a_2)$ and $u_2(a_1, a_2)$.

**Question 2.21:**

Provide the extensive-form and normal-form representations of the grenade game as described in Section 2.1. Identify the pure-strategy Nash equilibria. Determine the backwards-induction outcome. What is the subgame-perfect Nash equilibrium?

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