Question

NormalForm_Cournot References Mailings Review View A A Aa EE AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDdE A Normal No Spacing Heading 1 Heading 2 4 6 Game Theory HW #3 1. Intuitively, why is the normal form of a game (a table) not the best way to represent a sequential game? 2. Suppose that you and a friend play the following game and you move first. Diagram the game in its extensive form and identify the equilibrium. Your Friend Left 10,10 Down 14, 20 Right 15,12 12, 17 You Up I 3. In question #2 is there a first or second mover advantage? Why or why not? 4. Suppose that the game in question #2 was played simultaneously. What are the equilibria, if any? 5.

Answer 1

1)

Sequential games are those in which one player is aware of the moves made by the other player. One player chooses his strategy before the other player. Thai is, players must have information about the previous moves. Thus these games are governed by the time axis. But normal form of a game (table) does not have a time axis. So, its not the best way to represent sequential games. They are rather represented in the form of decision trees.

Please post the other questions separately. Thanks and good luck :)