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Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1's actual move and then decides to move right or left. If player 1 moves 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 out the ash equilibrium outcomes to this game.

c. Illustrate which of the equilibrium outcomes is most reasonable? Explain.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9220487

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