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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