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John Nash and his buddy return to the bar in which a few weeks ago they failed to secure either a blonde or a brunette. This week they have a new...

John Nash and his buddy return to the bar in which a few weeks ago they failed to secure either a blonde or a brunette. This week they have a new plan. First, John will choose a girl to approach. Then, after
observing the girl that John approaches, his buddy will choose a girl to approach (he can approach the same girl that John has approached or either of the other ones). There are still 3 girls: one blonde (B) and two brunettes (b1, b2) in the bar. Both John and his friend still prefer blondes to brunettes. They will be successful in approaching any girl, unless she is approached by both of them, in which case they leave the bar with nothing. Represent this situation as an extensive form game.
*How many strategies does John's buddy have?
(a) 2
(b) 3
(c) 27
(d) None of the above.

*Work out the Subgame Perfect equilibrium/ia. How many are there?
(a) 1
(b) 2
(c) 3
(d) None of the above.
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Economics-8227311.doc

John Nash and his buddy return to the bar in which a few weeks ago they failed to
secure either a blonde or a brunette. This week they have a new plan. First, John will
choose a girl to approach....

Sign up to view the full answer

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