Back to the "Battle of the Sexes" example, imagine that Brian is mad at Anna for some silly reason. For as long as he is mad at her, he will not enjoy her company as before. On top of whatever utility level he was getting from doing activities with Anna, Brian now experiences a discomfort equivalent to-5 utility units. The modified simultaneous game (normal form) is shown below. Anna Game Movie 1 Game -2 1 Brian 3 Movie 2 What's the equilibrium when Brian is the first mover? What's the equilibrium when Anna is the first mover? What do you conclude? Hint: You do not have to draw the corresponding tree form games, but they will help you answer this question.

Back to the "Battle of the Sexes" example, imagine that Brian is mad at Anna for some silly reason. For as long as he is mad at her, he will not enjoy her company as before. On top of whatever utility level he was getting from doing activities with Anna, Brian now experiences a discomfort equivalent to-5 utility units. The modified simultaneous game (normal form) is shown below. Anna Game Movie 1 Game -2 1 Brian 3 Movie 2 What's the equilibrium when Brian is the first mover? What's the equilibrium when Anna is the first mover? What do you conclude? Hint: You do not have to draw the corresponding tree form games, but they will help you answer this question.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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