1. Transform the following extensive game into a matrix, including the player, strategies andpayoffs.1,2L1T12,1R11TB10,01BT20,0L2B21,2R22,3a) Using the Best Response, identify all existing equilibriums for this game.b) Are any of these equilibriums is NOT a SPNE? Which one and why?

There are two players in the game : Player 1 & Player 2 Strategy Set of player 1 : { T , B ,…

Answered: 1. Transform the following extensive…

1. Transform the following extensive game into a matrix, including the player, strategies and payoffs. L1 R1 1 T 1 B L2 R2

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 2E

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Question

1. Transform the following extensive game into a matrix, including the player, strategies and
payoffs.
1,2
L1
T1
2,1
R1
1
T
B1
0,0
1
B
T2
0,0
L2
B2
1,2
R2
2,3
a) Using the Best Response, identify all existing equilibriums for this game.
b) Are any of these equilibriums is NOT a SPNE? Which one and why?

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