BET GAME Each player puts an ante of $1 into the pot. There are four kings and four queens. The professor will randomly draw a card from the dealer, privately observe what it is, and decide whether to fold or to bet.< a) If the professor folds, the game ends, and you wins the pot, gaining the professor's $1 ante.< b) If the professor bets, another dollar will be placed in the pot, after which you has the option to either fold or call.< b-1) if you fold, the game is end and you lose you $1 ante.< b-2) if you call, you need to add another $1 to the pot and the professor need to reveal the card. At this stage, there will be $4 in the pot. You win the pot with a queen and lose the pot with a king.< (1) Draw the Game Tree.< (2) Write down the Payoff Matrix. (3) Find the Bayesian Nash Equilibrium (4) Find the Perfect Bayesian Nash Equilibrium.<
BET GAME Each player puts an ante of $1 into the pot. There are four kings and four queens. The professor will randomly draw a card from the dealer, privately observe what it is, and decide whether to fold or to bet.< a) If the professor folds, the game ends, and you wins the pot, gaining the professor's $1 ante.< b) If the professor bets, another dollar will be placed in the pot, after which you has the option to either fold or call.< b-1) if you fold, the game is end and you lose you $1 ante.< b-2) if you call, you need to add another $1 to the pot and the professor need to reveal the card. At this stage, there will be $4 in the pot. You win the pot with a queen and lose the pot with a king.< (1) Draw the Game Tree.< (2) Write down the Payoff Matrix. (3) Find the Bayesian Nash Equilibrium (4) Find the Perfect Bayesian Nash Equilibrium.<
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![BET GAME
Each player puts an ante of $1 into the pot. There are four kings and four
queens. The professor will randomly draw a card from the dealer, privately
observe what it is, and decide whether to fold or to bet.<
a) If the professor folds, the game ends, and you wins the pot, gaining the
professor's $1 ante.<
b) If the professor bets, another dollar will be placed in the pot, after which you
has the option to either fold or call.<
b-1) if you fold, the game is end and you lose you $1 ante.<
b-2) if you call, you need to add another $1 to the pot and the professor need to
reveal the card. At this stage, there will be $4 in the pot. You win the pot with
a queen and lose the pot with a king.<
(1) Draw the Game Tree.<
(2) Write down the Payoff Matrix.
(3) Find the Bayesian Nash Equilibrium
(4) Find the Perfect Bayesian Nash Equilibrium.<](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F33cbf2df-353d-4d23-b67b-a6aa42f3190e%2F9cd9e430-943a-4ba0-9da7-9fff8f7b94e9%2F0xhkiyoq_processed.png&w=3840&q=75)
Transcribed Image Text:BET GAME
Each player puts an ante of $1 into the pot. There are four kings and four
queens. The professor will randomly draw a card from the dealer, privately
observe what it is, and decide whether to fold or to bet.<
a) If the professor folds, the game ends, and you wins the pot, gaining the
professor's $1 ante.<
b) If the professor bets, another dollar will be placed in the pot, after which you
has the option to either fold or call.<
b-1) if you fold, the game is end and you lose you $1 ante.<
b-2) if you call, you need to add another $1 to the pot and the professor need to
reveal the card. At this stage, there will be $4 in the pot. You win the pot with
a queen and lose the pot with a king.<
(1) Draw the Game Tree.<
(2) Write down the Payoff Matrix.
(3) Find the Bayesian Nash Equilibrium
(4) Find the Perfect Bayesian Nash Equilibrium.<
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