Answer to Question #68456 in Microeconomics for R Angami
Consider the pay off matrix.Player 1 and player 2,
A 1,1 3.3
N 2,4 4.2
(a)Find all the Nash Equilibrium of this game.Which player (S) if any,would have a dominant strategy?
(b)Suppose that player 1 moves firstby choosing either A or N .Player 2 observe player player 1's action and choose 1 or 0. For every action combination players payoffs are the same as in the above payoff matrix.Draw a tree of this new game .How many strategies does player 1 have and what atre they?Find all the sub game, perfect equilibria of this game.