Consider the following game in extensive form, involving the chance parameter p. A P[T] = P (0,0) 97 U P[H] = 1-p h B h d P[T] = P (-60,60) (20,-20) (40,-40) (0,0) n P[H]=1-P (0,0) Suppose that p = 0.75 and the strategy profile (u, h) is played. What expected payoff does player B receive? (Report your answer in decimal form, rounding if necessary to two places.
Consider the following game in extensive form, involving the chance parameter p. A P[T] = P (0,0) 97 U P[H] = 1-p h B h d P[T] = P (-60,60) (20,-20) (40,-40) (0,0) n P[H]=1-P (0,0) Suppose that p = 0.75 and the strategy profile (u, h) is played. What expected payoff does player B receive? (Report your answer in decimal form, rounding if necessary to two places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Consider the following game in extensive form, involving the chance parameter p.
PT] =P
(0,0)
N
Answer:
U
P[H] = 1-p
h
B
P[T] = P
h
d
(-60,60) (20,-20) (40,-40)
t
(0,0)
N
P[H] = 1-p
(0,0)
Suppose that p = 0.75 and the strategy profile (u, h) is played.
What expected payoff does player B receive? (Report your answer in decimal form, rounding if necessary to two places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaddc3fc-ec97-4ca6-aaae-bb996b719b45%2Faadf18b9-ebb9-4036-b620-681f70f4c8d9%2F36qq7og.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following game in extensive form, involving the chance parameter p.
PT] =P
(0,0)
N
Answer:
U
P[H] = 1-p
h
B
P[T] = P
h
d
(-60,60) (20,-20) (40,-40)
t
(0,0)
N
P[H] = 1-p
(0,0)
Suppose that p = 0.75 and the strategy profile (u, h) is played.
What expected payoff does player B receive? (Report your answer in decimal form, rounding if necessary to two places.
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