Consider the following normal-form game. a. What is player B's best strategy in a simultaneous-move play of this game?
b. What is player A's best strategy in a simultaneous-move play of this game?
c. What are player A and B's equilibrium payoff in a simultaneous-move play of this game?
d. Use an extensive-form representation to show that player B can earn higher payoffs by exercising a first-mover advantage. (Note: Player B's payoffs will appear first in this extensive-form game since it is the first mover.)
e. List two things player B must do in order to be able to achieve these higher payoffs.

Question

Consider the following normal-form game.  a. What is player B's best strategy in a simultaneous-move play of this game?
b. What is player A's best strategy in a simultaneous-move play of this game?
c. What are player A and B's equilibrium payoff in a simultaneous-move play of this game?
d. Use an extensive-form representation to show that player B can earn higher payoffs by exercising a first-mover advantage. (Note: Player B's payoffs will appear first in this extensive-form game since it is the first mover.)
e. List two things player B must do in order to be able to achieve these higher payoffs.

Quizplus · Accepted Answer

The Answer of Consider the following normal-form game.  a. What is player B's best strategy in a simultaneous-move play of this game?
b. What is player A's best strategy in a simultaneous-move play of this game?
c. What are player A and B's equilibrium payoff in a simultaneous-move play of this game?
d. Use an extensive-form representation to show that player B can earn higher payoffs by exercising a first-mover advantage. (Note: Player B's payoffs will appear first in this extensive-form game since it is the first mover.)
e. List two things player B must do in order to be able to achieve these higher payoffs.

Consider the Following Normal-Form Game