6. Consider the following game in extensive form: At stage 1, player 1 chooses between R and D. - If he chooses D, player 1 gets 1 and player 2 gets 0; - If he chooses R, the game moves to the second round. At stage 2, player 2 chooses between r and d. - If he chooses d, player 1 gets 0 and player 2 gets 2:- If he chooses r, the game moves to the second round. At stage 3, player 1 chooses between R - If he chooses D, player 1 gets 3 and player 2 gets 1; - If he chooses R, the game moves to the second round. At stage 4, player 2 chooses between r and d. - If he chooses d, player 1 gets 2 and player 2 gets 4; - If he chooses R, both players get 3. a. Draw the tree representation of the game.

6. Consider the following game in extensive form: At stage 1, player 1 chooses between R and D. - If he chooses D, player 1 gets 1 and player 2 gets 0; - If he chooses R, the game moves to the second round. At stage 2, player 2 chooses between r and d. - If he chooses d, player 1 gets 0 and player 2 gets 2:- If he chooses r, the game moves to the second round. At stage 3, player 1 chooses between R - If he chooses D, player 1 gets 3 and player 2 gets 1; - If he chooses R, the game moves to the second round. At stage 4, player 2 chooses between r and d. - If he chooses d, player 1 gets 2 and player 2 gets 4; - If he chooses R, both players get 3. a. Draw the tree representation of the game.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Problem 3 Consider the following simultaneous normal form game: P.2 R 0,0 -1, 1 1, -1 P.1 P 1, -1 0,0 -1, 1 S -1, 1 1, -1 0,0 Now assume the game is not simultaneous and player 1 gets to play first. Create a game tree that represents the sequential game. Also, name each node, define the set of information sets for each player, show which nodes are in which information set and add define action sets at each info set.