Unformatted text preview: R and then (r,y) gives (7,2). (4 points) a. Draw the game tree. b. Show the subgames of the game. c. Find the subgame perfect equilibria (equilibrium) of the game. d. Find the Nash equilibria of the game and compare your answers in parts c and d. Which of the NE are based on non credible threats? 2. Find the SPE of the entry game # 3 (discussed in class) using backward induction approach. (1 point)...
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- Winter '10
- Game Theory, #, subgame perfect equilibria, following extensive form, backward induction approach