a)Return to the two-player game tree in part (a) of ExerciseU2 in Chapter 3.(a)(b)Write the game in strategic form, making Albus theRow player and Minerva the Column player. Find allNash equilibria.For those equilibria you found in part (a) of thisexercise that are not subgame-perfect, identify thereason.13,0aMINERVA12,1N1,1aMINERVAALBUSESMINERVA15,020a4,4b1,5

A Nash equilibrium is a concept in game theory in which each player's strategy is premiere given the…

Answered: Nash equilibria.

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a)
Return to the two-player game tree in part (a) of Exercise
U2 in Chapter 3.
(a)
(b)
Write the game in strategic form, making Albus the
Row player and Minerva the Column player. Find all
Nash equilibria.
For those equilibria you found in part (a) of this
exercise that are not subgame-perfect, identify the
reason.
13,0
a
MINERVA
12,1
N
1,1
a
MINERVA
ALBUS
E
S
MINERVA
15,0
20
a
4,4
b
1,5

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