Chapter8: Game Theory
Section: Chapter Questions
Problem 8.3P
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Transcribed Image Text:Consider the following two player extensive form game.
メ
(2,5) (4,)
(3,5)
a. Find the induced normal form of the given extensive form game using the pure strategies of the players. Find out all the possible Nash Equilibrium of
this game.
b. From the Nash Equilibrium you are getting in part a., which one is subgame perfect Nash Equilibrium? Explain with appropriate reasons.
c. Explain why the NE in part b. is credible. (Use maximum 3 sentences):
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