Bill and Tom are playing a game.At each round of the game,they have to choose either Strategy X or Strategy Y.However,Tom can make a decision only after Bill has made his decision.If they both choose X,each gains $100,and if both of them choose Y,each gains $50.However,if Bill chooses X and Tom chooses Y,Bill gains $60 while Tom gains $140.Similarly,when Bill chooses Y and Tom chooses X,Tom gains $60 while Bill gains $140.
a)Draw a game tree to represent this game.
b)What type of game is being played? What is the procedure used to solve such a game?
c)What is Tom's optimal strategy if Bill chooses Strategy X?
d)What is Bill's payoff in equilibrium?

Question

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The Answer of Bill and Tom are playing a game.At each round of the game,they have to choose either Strategy X or Strategy Y.However,Tom can make a decision only after Bill has made his decision.If they both choose X,each gains $100,and if both of them choose Y,each gains $50.However,if Bill chooses X and Tom chooses Y,Bill gains $60 while Tom gains $140.Similarly,when Bill chooses Y and Tom chooses X,Tom gains $60 while Bill gains $140.
a)Draw a game tree to represent this game.
b)What type of game is being played? What is the procedure used to solve such a game?
c)What is Tom's optimal strategy if Bill chooses Strategy X?
d)What is Bill's payoff in equilibrium?

Bill and Tom Are Playing a Game