please solve it with showing the work thank you 1. Convert into Normal-Form Game and Find out the subgame-Nash Equi- libria? OUT O (0, 2) Small Entrant (-6, -6) Small IN Entrant Incumbent Large Large Small (-1,1) (1,-1) Large (-3,-3) 2. What does the Information set imply in this game?
please solve it with showing the work thank you 1. Convert into Normal-Form Game and Find out the subgame-Nash Equi- libria? OUT O (0, 2) Small Entrant (-6, -6) Small IN Entrant Incumbent Large Large Small (-1,1) (1,-1) Large (-3,-3) 2. What does the Information set imply in this game?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:please solve it with showing the work thank you
OUT
1. Convert into Normal-Form Game and Find out the subgame-Nash Equi-
libria?
(0,2)
Small
Entrant
(-6, -6)
Small
Show Transcribed Text
IN
J
Entrant
Incumbent
Large
Large Small
Ć
(-1,1) (1,-1)
2. What does the Information set imply in this game?
Large
(-3,-3)
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