Chapter15: Oligopoly And Strategic Behavior
Section: Chapter Questions
Problem 17P
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Transcribed Image Text:Consider the following game :
Stag
Rabbit
Stag
9, 9
0, 8
Rabbit
8, 0
7, 7
The first payoff is that of player 1 and the second
that of player 2.
a. ) Draw the extensive form of the simultaneous game.
Find all the Nash equilibrium.
p. Suppose player 1 moves first or we are in a
sequential game now. Draw the extensive form in the
sequential version.
c. What is the subgame perfect Nash Equilibrium
(SPNE) in the sequential version?
d. ) Explain why it is an SPNE.
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