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Instructions: Show all your work (including bi-matrix and/or game tree when relevant). 1. Two investors have each deposited 4 (all amounts are in $10,000s) with a bank. The bank has invested these deposits in a long-term project. If both investors make withdrawals at date 1 then each receives 2 and the game ends. If only one investor makes a withdrawal at date 1 then that investor receives 4, the other receives 0, and the game ends. Finally, if neither investor makes a withdrawal at date 1 then the project matures and the investors make withdrawal decisions at date 2. If both investors make withdrawals at date 2 then each receives 8 and the game ends. If only one investor makes a withdrawal at date 2 then that investor receives 10, the other receives 6, and the game ends. Finally, if neither investor makes a withdrawal at date 2 then the bank returns 8 to each investor and the game ends. Find the subgame-perfect outcomes.

Instructions: Show all your work (including bi-matrix and/or game tree when relevant). 1. Two investors have each deposited 4 (all amounts are in $10,000s) with a bank. The bank has invested these deposits in a long-term project. If both investors make withdrawals at date 1 then each receives 2 and the game ends. If only one investor makes a withdrawal at date 1 then that investor receives 4, the other receives 0, and the game ends. Finally, if neither investor makes a withdrawal at date 1 then the project matures and the investors make withdrawal decisions at date 2. If both investors make withdrawals at date 2 then each receives 8 and the game ends. If only one investor makes a withdrawal at date 2 then that investor receives 10, the other receives 6, and the game ends. Finally, if neither investor makes a withdrawal at date 2 then the bank returns 8 to each investor and the game ends. Find the subgame-perfect outcomes.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Instructions: Show all your work (including bi-matrix and/or game tree when relevant). 1. Two investors have each deposited 4 (all amounts are in $10,000s) with a bank. The bank has invested these deposits in a long-term project. If both investors make withdrawals at date 1 then each receives 2 and the game ends. If only one investor makes a withdrawal at date 1 then that investor receives 4, the other receives 0, and the game ends. Finally, if neither investor makes a withdrawal at date 1 then the project matures and the investors make withdrawal decisions at date 2. If both investors make withdrawals at date 2 then each receives 8 and the game ends. If only one investor makes a withdrawal at date 2 then that investor receives 10, the other receives 6, and the game ends. Finally, if neither investor makes a withdrawal at date 2 then the bank returns 8 to each investor and the game ends. Find the subgame-perfect outcomes.
Transcribed Image Text:Instructions: Show all your work (including bi-matrix and/or game tree when relevant). 1. Two investors have each deposited 4 (all amounts are in $10,000s) with a bank. The bank has invested these deposits in a long-term project. If both investors make withdrawals at date 1 then each receives 2 and the game ends. If only one investor makes a withdrawal at date 1 then that investor receives 4, the other receives 0, and the game ends. Finally, if neither investor makes a withdrawal at date 1 then the project matures and the investors make withdrawal decisions at date 2. If both investors make withdrawals at date 2 then each receives 8 and the game ends. If only one investor makes a withdrawal at date 2 then that investor receives 10, the other receives 6, and the game ends. Finally, if neither investor makes a withdrawal at date 2 then the bank returns 8 to each investor and the game ends. Find the subgame-perfect outcomes.
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