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(i) List the strategies of each player. (ii) Find the subgame perfect Nash equilibrium. (iii) Present the strategic form of the game and find all the pure strategy Nash equilibria in the strategic form. (Mars is the row player, Mercury is the column player and Venus is the matrix player.) For each Nash equilibrium in the strategic form that is not subgame perfect in the extensive form, provide a reason why it is not so.

(i) List the strategies of each player. (ii) Find the subgame perfect Nash equilibrium. (iii) Present the strategic form of the game and find all the pure strategy Nash equilibria in the strategic form. (Mars is the row player, Mercury is the column player and Venus is the matrix player.) For each Nash equilibrium in the strategic form that is not subgame perfect in the extensive form, provide a reason why it is not so.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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4. (Backward induction/normal form) Consider the following sequential move game played by three players; Mars, Mercury and Venus. Mars A B Mercury Venus R M. Mars Mars 1 3 T P T 2 1 3 Mars 3. 1 Mercury 4 1 2 Venus 1 3 3 (i) List the strategies of each player. (ii) Find the subgame perfect Nash equilibrium. (iii) Present the strategic form of the game and find all the pure strategy Nash equilibria in the strategic form. (Mars is the row player, Mercury is the column player and Venus is the matrix player.) For each Nash equilibrium in the strategic form that is not subgame perfect in the extensive form, provide a reason why it is not so.
Transcribed Image Text:4. (Backward induction/normal form) Consider the following sequential move game played by three players; Mars, Mercury and Venus. Mars A B Mercury Venus R M. Mars Mars 1 3 T P T 2 1 3 Mars 3. 1 Mercury 4 1 2 Venus 1 3 3 (i) List the strategies of each player. (ii) Find the subgame perfect Nash equilibrium. (iii) Present the strategic form of the game and find all the pure strategy Nash equilibria in the strategic form. (Mars is the row player, Mercury is the column player and Venus is the matrix player.) For each Nash equilibrium in the strategic form that is not subgame perfect in the extensive form, provide a reason why it is not so.
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