Consider the following three-player game (player 3 chooses A or B, the payoffs are listed in order of the player numbers): Player 2 Player 2 L R L R U 2, 2,0 5, 5, 5 U 4, 4, 1 4, 2,8 Player 1 Player 1 D 8, 6, 8 0, 7, 4 D 0,2,9 4, 2, 5 А B 1. Find the pure-strategy Nash equilibria of this game. 2. Consider the two-period repeated game (the repeated game payoffs are simply the sums of the payoffs in the two periods). Find the subgame-perfect equilibria of the repeated game and list the set of payoffs.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the following three-player game (player 3 chooses A or B, the payoffs are listed in order of the player numbers):
Player 2
Player 2
L
R
U
2, 2,0
5,5, 5
U
4, 4, 1
4, 2, 8
Player 1
Player 1
D
8, 6, 8
0,7,4
D
0, 2,9
4, 2, 5
A
1. Find the pure-strategy Nash equilibria of this game.
2. Consider the two-period repeated game (the repeated game payoffs are simply the sums of the payoffs in the two periods). Find
the subgame-perfect equilibria of the repeated game and list the set of payoffs.
Transcribed Image Text:Consider the following three-player game (player 3 chooses A or B, the payoffs are listed in order of the player numbers): Player 2 Player 2 L R U 2, 2,0 5,5, 5 U 4, 4, 1 4, 2, 8 Player 1 Player 1 D 8, 6, 8 0,7,4 D 0, 2,9 4, 2, 5 A 1. Find the pure-strategy Nash equilibria of this game. 2. Consider the two-period repeated game (the repeated game payoffs are simply the sums of the payoffs in the two periods). Find the subgame-perfect equilibria of the repeated game and list the set of payoffs.
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