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Consider the following game [payoffs are in the form: (Ann, Bob, Carol)]:
a) List each player's actions and strategies.
b) If Ann "buys" Carol's position in the game (i.e., she moves for Carol and collects Carol's payoffs in addition to her own), what are her new strategies?
c) The game is represented above in what form? Represent the new game in the normal (strategic) form.
d) If Ann cannot observe Bob's actions, draw this game in the two standard forms.
Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities: b: $3,000 $3,300 $
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