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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Page
4.
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
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.
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