Brett and Oliver are both going surfing. Each can choose between "North Beach" (N) and "South Beach" (S). North beach is better, but they both also prefer having the beach to themselves rather than sharing it with the other person. If Brett chooses N and Oliver N, the payoffs are (60, 60). If Brett chooses N and Oliver Chooses S, the payoffs are (70,30). If Brett chooses S and Oliver N the payoffs are (30,70). If they both choose S the payoffs are (20,20). Brett gets to choose first and tells Oliver, who then makes a decision. Which of the following is true? O The number of nash equillibrium in this game is less than the number of subgame perfect equillibrium O The number of nash equillibrium in this game is the same as the number of subgame perfect equillibrium O The number of nash equillibrium in this game is more than the number of subgame perfect equillibrium O There is no subgame perfect equilibrium in this game

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter15: Strategic Games
Section: Chapter Questions
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Brett and Oliver are both going surfing. Each can choose between "North Beach" (N) and "South Beach" (S). North beach is better, but they both also prefer having
the beach to themselves rather than sharing it with the other person. If Brett chooses N and Oliver N, the payoffs are (60, 60). If Brett chooses N and Oliver Chooses
S, the payoffs are (70,30). If Brett chooses S and Oliver N the payoffs are (30,70). If they both choose S the payoffs are (20,20). Brett gets to choose first and tells
Oliver, who then makes a decision. Which of the following is true?
O The number of nash equillibrium in this game is less than the number of subgame perfect equillibrium
O The number of nash equillibrium in this game is the same as the number of subgame perfect equillibrium
O The number of nash equillibrium in this game is more than the number of subgame perfect equillibrium
O There is no subgame perfect equilibrium in this game
Transcribed Image Text:Brett and Oliver are both going surfing. Each can choose between "North Beach" (N) and "South Beach" (S). North beach is better, but they both also prefer having the beach to themselves rather than sharing it with the other person. If Brett chooses N and Oliver N, the payoffs are (60, 60). If Brett chooses N and Oliver Chooses S, the payoffs are (70,30). If Brett chooses S and Oliver N the payoffs are (30,70). If they both choose S the payoffs are (20,20). Brett gets to choose first and tells Oliver, who then makes a decision. Which of the following is true? O The number of nash equillibrium in this game is less than the number of subgame perfect equillibrium O The number of nash equillibrium in this game is the same as the number of subgame perfect equillibrium O The number of nash equillibrium in this game is more than the number of subgame perfect equillibrium O There is no subgame perfect equilibrium in this game
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