What the information sets in the above game denote?  Player 2 does not observe the action of player 1, so he does not know in which decision node he/she is playing at.   Player 2 does not observe the precise action of player 1, but he does know that player 1 has played either one between a and b, or one between c and d.   Player 2 doe

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Q17. What the information sets in the above game denote? 
  • Player 2 does not observe the action of player 1, so he does not know in which decision node he/she is playing at.
     
  • Player 2 does not observe the precise action of player 1, but he does know that player 1 has played either one between a and b, or one between c and d.
     
  • Player 2 does not observe the precise action of player 1, but he does know that player 1 has played one between a and c, or one between b and d.
     
  • Player 2 does not observe the precise action of player 1, but he does know that player 1 has played either one between a and d, or one between b and c.
     
 
Q16. Describing games
2
X
Player 1 4
Player 2 2
X
22
1
3 2
b
0
3
61
X
4
2 5
O
Transcribed Image Text:Q16. Describing games 2 X Player 1 4 Player 2 2 X 22 1 3 2 b 0 3 61 X 4 2 5 O
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