a) Find the pure strategy Nash Equilibrium for the subgame starting at player l's second decision node. b) Find the Subgame Perfect Nash Equilibria for the entire game. Withdraw Not 2 Withdraw Not Withdraw Not 10 2 1 2 10 Not Withdraw 2 Withdraw Not Withdraw Not 15 20 10 15 15 10 20 15

a) Find the pure strategy Nash Equilibrium for the subgame starting at player l's second decision node. b) Find the Subgame Perfect Nash Equilibria for the entire game. Withdraw Not 2 Withdraw Not Withdraw Not 10 2 1 2 10 Not Withdraw 2 Withdraw Not Withdraw Not 15 20 10 15 15 10 20 15

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Question

a) Find the pure strategy Nash Equilibrium
for the subgame starting at player l's
second decision node.
b) Find the Subgame Perfect Nash
Equilibria for the entire game.
1
Withdraw
Not
2
Withdraw
Not Withdraw
Not
10
2
6
2
10
Not
Withdraw
2
Withdraw
Not Withdraw
Not
15
20
10
15
15
10
20
15
49

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