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CLASSES OF GAMES First, Alice chooses either action al or action a2. If Alice chooses action al, then she receives a payoff of 2 and Bob receives a payoff of 8. If Alice chooses action a2, then Bob chooses either action b1 or action b2. If Bob chooses action b1, then Alice receives a payoff of 0 and Bob receives a payoff of 2. If Bob chooses action b2, then Alice receives a payoff of 4 and Bob receives a payoff of 4. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) This game has perfect information. The strategy profile (a2, b1) is a Nash equilibrium of this game. Bob's backward induction payoff is 8. The strategy profile (a1,b1) is a Nash equilibrium of this game. The strategy profile (a1,b2) is a Nash equilibrium of this game. The strategy profile (a2,b2) is a Nash equilibrium of this game. This is a bargaining game. This is a promise game. This is a threat game. Alice's backward induction payoff is 2.

CLASSES OF GAMES First, Alice chooses either action al or action a2. If Alice chooses action al, then she receives a payoff of 2 and Bob receives a payoff of 8. If Alice chooses action a2, then Bob chooses either action b1 or action b2. If Bob chooses action b1, then Alice receives a payoff of 0 and Bob receives a payoff of 2. If Bob chooses action b2, then Alice receives a payoff of 4 and Bob receives a payoff of 4. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) This game has perfect information. The strategy profile (a2, b1) is a Nash equilibrium of this game. Bob's backward induction payoff is 8. The strategy profile (a1,b1) is a Nash equilibrium of this game. The strategy profile (a1,b2) is a Nash equilibrium of this game. The strategy profile (a2,b2) is a Nash equilibrium of this game. This is a bargaining game. This is a promise game. This is a threat game. Alice's backward induction payoff is 2.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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CLASSES OF GAMES First, Alice chooses either action al or action a2. If Alice chooses action al, then she receives a payoff of 2 and Bob receives a payoff of 8. If Alice chooses action a2, then Bob chooses either action b1 or action b2. If Bob chooses action b1, then Alice receives a payoff of 0 and Bob receives a payoff of 2. If Bob chooses action b2, then Alice receives a payoff of 4 and Bob receives a payoff of 4. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) This game has perfect information. The strategy profile (a2,b1) is a Nash equilibrium of this game. Bob's backward induction payoff is 8. The strategy profile (al,b1) is a Nash equilibrium of this game. The strategy profile (a1,b2) is a Nash equilibrium of this game. The strategy profile (a2,b2) is a Nash equilibrium of this game. This is a bargaining game. This is a promise game. This is a threat game. Alice's backward induction payoff is 2.
Transcribed Image Text:CLASSES OF GAMES First, Alice chooses either action al or action a2. If Alice chooses action al, then she receives a payoff of 2 and Bob receives a payoff of 8. If Alice chooses action a2, then Bob chooses either action b1 or action b2. If Bob chooses action b1, then Alice receives a payoff of 0 and Bob receives a payoff of 2. If Bob chooses action b2, then Alice receives a payoff of 4 and Bob receives a payoff of 4. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) This game has perfect information. The strategy profile (a2,b1) is a Nash equilibrium of this game. Bob's backward induction payoff is 8. The strategy profile (al,b1) is a Nash equilibrium of this game. The strategy profile (a1,b2) is a Nash equilibrium of this game. The strategy profile (a2,b2) is a Nash equilibrium of this game. This is a bargaining game. This is a promise game. This is a threat game. Alice's backward induction payoff is 2.
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