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Unformatted text preview: market and B will get 70%. What is the unique Nash Equilibrium of this game? Show both that it is an equilibrium and prove that any other combinations of actions is not. (15 points) 3. ± 1 2 2 ± ± L R l l r r 1: 4 3 2 2: 2 2 4 5 a) In the above game, suppose player one’s strategy is L and player 2’s strategy is always play r. Is this a subgame-perfect equilibrium? Demonstrate why it is or is not.(7 points) b) Write this game in normal form.(6 points) c) Find all equilibria of the game. Demonstrate whether it is or is not subgame perfect.(7 points) 1...
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This note was uploaded on 10/22/2009 for the course ECG 700 taught by Professor Morrill during the Fall '09 term at N.C. State.
- Fall '09