When you are with a young child and want to show them something fun and new, there is the risk that, if they enjoy it, they'll ask for it over and over and over again, and if you ever say no they'll throw a fit, which you will then have to deal with. Consider the following game: First, you decide whether to show them an Old thing again, or a New thing. If you show them the Old thing, you get 2 points and the kid gets 2 points Then, If you showed them the New thing, the kid chooses whether to Ask for it to happen again, or Not Ask. If they choose Not Ask, you get 3 points and the kid gets 3 points If they choose to Ask, you can choose to say Yes, in which case you get 1 point and the kid gets 4 points, or No, in which case they throw a fit, and you get O points and the kid gets 2 points Draw the game tree for this game.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
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When you are with a young child and want to show them something fun and new, there is the risk
that, if they enjoy it, they'll ask for it over and over and over again, and if you ever say no they'll
throw a fit, which you will then have to deal with.
Consider the following game:
First, you decide whether to show them an Old thing again, or a New thing. If you show them the
Old thing, you get 2 points and the kid gets 2 points
Then, If you showed them the New thing, the kid chooses whether to Ask for it to happen again, or
Not Ask. If they choose Not Ask, you get 3 points and the kid gets 3 points
If they choose to Ask, you can choose to say Yes, in which case you get 1 point and the kid gets 4
points, or No, in which case they throw a fit, and you get 0 points and the kid gets 2 points
Draw the game tree for this game.
Transcribed Image Text:When you are with a young child and want to show them something fun and new, there is the risk that, if they enjoy it, they'll ask for it over and over and over again, and if you ever say no they'll throw a fit, which you will then have to deal with. Consider the following game: First, you decide whether to show them an Old thing again, or a New thing. If you show them the Old thing, you get 2 points and the kid gets 2 points Then, If you showed them the New thing, the kid chooses whether to Ask for it to happen again, or Not Ask. If they choose Not Ask, you get 3 points and the kid gets 3 points If they choose to Ask, you can choose to say Yes, in which case you get 1 point and the kid gets 4 points, or No, in which case they throw a fit, and you get 0 points and the kid gets 2 points Draw the game tree for this game.
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