Question

ELET Aanpo AA AaBbc Nam There are two games below. Players are American and United with planes with 96 seats or 64 seats. Solve both the simultaneous and sequential versions of the game. Explain how you got your answer. American Focus

need help solving and explanation please.

Answer 1

AA O A 12 96 64 64 strictly dominates UA 9610,0 31,2 96 for both AA and UA as 270 and 64 2,311 4.1, 4.1 4.173.1 so both players will select 64 and Nash equilibrium is (64,64) and pay off is (4.1, 4.1) 96 0,0 At final node su 2,31 1, OA will choose 64 as 96 3.1,2 4:1) 2. and at final 64 411, 4341 node 2 UA will choose 64 as 3.170. So, the game becomes a6 2,311 so at the initial nodo player AA will always 64 4.1, 4.1 choose 64 as 4.170.2 so, the subgame pufect equilibrium is (64, 6464) and pay off (41,41) VA - 0 AA