A two-player, sequential-move game

by | Nov 6, 2021 | Assignment

Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1moves first. Player 2 observes player 1’s actual move and then decides to move right or left. If player 1moves right, player 1 receives $0 and player 2 receives $15. If both players move left, player 1 receives -$10 and player 2 receives $8. If player 1 moves left and player 2 moves right, player 1 receives 10 and player 2 receives $10.

a. Write the above game in extensive form.

b. Find the ash equilibrium outcomes to this game.

c. Which of the equilibrium outcomes is most reasonable? Explain.

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