116A_HW5+6 - c. Write the game in the normal form, and find...

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Econ 116A, Fall 2010 Homework # 5/6 1. Consider the three stage entry game number two (between coke and pepsi) discussed in class. a. Draw the game tree and write down the strategies of the two players. b. Solve the game by backward induction method.
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Unformatted text preview: c. Write the game in the normal form, and find the Nash equilibria. d. Compare the answers in parts b and c. Give reasons for the differences. 2. Exercise 179.2...
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