Sequential-move game-find the rollback equilibrium for game

Assignment Help Business Economics
Reference no: EM13998913

Two players, A and B, take part in a sequential-move game. A moves first, B moves second, and each player moves only once. A has two possible actions: Left or Right. No matter what A chooses, B has three possible actions: Top, Middle, or Bottom. The payoffs for the two players are summarized as follows:

Case 1: A chooses Left and B chooses Top; A’s payoff is 3; B’s payoff is 2.

Case 2: A chooses Left and B chooses Middle; A’s payoff is 4; B’s payoff is 1.

Case 3: A chooses Left and B chooses Bottom; A’s payoff is 2; B’s payoff is 3.

Case 4: A chooses Right and B chooses Top; A’s payoff is 2; B’s payoff is 1.

Case 5: A chooses Right and B chooses Middle; A’s payoff is 1; B’s payoff is 4.

Case 6: A chooses Right and B chooses Bottom; A’s payoff is 4; B’s payoff is 3.

(a) Draw a game tree to illustrate this game. Please label all the nodes and branches carefully.

(b) List all the strategies player A has; list all the strategies player B has.

(c) Find the rollback equilibrium for this game.

Reference no: EM13998913

Questions Cloud

What amount of impairment loss : What amount of impairment loss, if any, should Web Helper recognize?
Find all possible nash equilibria : Two folks found $100 on the street and have to decide how to split it. A game theorist came by and proposed the following resolution. Each player simultaneously declares the amount she wants to keep. If the demands sum up to less than or equal to $10..
The market for beer is perfectly competitive : The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine beers is a company that produces the beer and has a total cost funtion of TC = 480 + Q2. It also has a marginal cost given by MC = 2Q, where Q is barrels of beer..
What is the spot size for blu-ray players : What is the spot use for CD players? What is the spot size for Blu-Ray players? Calculate the ratio of the focal spot area for the Blu-Ray disc player compared to CDs (ie., Ratio= A Blu-Ray, ACD).
Sequential-move game-find the rollback equilibrium for game : Two players, A and B, take part in a sequential-move game. A moves first, B moves second, and each player moves only once. A has two possible actions: Left or Right. No matter what A chooses, B has three possible actions: Top, Middle, or Bottom. The ..
On a graph with time on the horizontal axis : On a graph with time on the horizontal axis and yt on the vertical axis, draw the evolution of output per worker over time. Does output per worker grow in the long run? Explain why or why not.
How should demmert account for each of these expenditures : How should Demmert account for each of these expenditures?
What are some of the factors that affect social mobility : What are some of the factors that affect social mobility? Can these be overcome? Do you believe the structural-functionalist or the social-conflict approach best explains social stratification? Why
Utility maximization is characterized by the tangency rule : Charlie has utility function U(x,y)=24x^1/2+y. If he maximizes her utility, what is the amount of good y that he consumes, when price of x is 4, price of y is 1, and income is 50 (in this case utility maximization is characterized by the tangency rul..

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd