Part 1 Sam and Ray do not like each other and will be miserable if they attend the same event. Both are going out Friday night to either the bar or a concert; and Sam will publicly tweet where he is going before Ray makes his plans. Each  will get 6 payoff from going to a concert and 2 benefit from going to the bar if the other is not there. If both go to the same venue, they will get a payoff of zero. Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both. Part 2 Take the game from the question above and switch the order of the decisions. Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both. Has the equilibrium strategies and payoffs changed from the question above? Explain why.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Part 1

Sam and Ray do not like each other and will be miserable if they attend the same event. Both are going out Friday night to either the bar or a concert; and Sam will publicly tweet where he is going before Ray makes his plans. Each  will get 6 payoff from going to a concert and 2 benefit from going to the bar if the other is not there. If both go to the same venue, they will get a payoff of zero.

Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both.

Part 2

Take the game from the question above and switch the order of the decisions.

Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both. Has the equilibrium strategies and payoffs changed from the question above? Explain why.

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