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Mathematics, 16.10.2019 00:30 gomez1718
Consider the following two-player game: first, player 1 selects a number x, which must be greater than or equal to zero. player 2 observes x. then, simultaneously and independently, player 1 selects a number y1 and player 2 selects a number y2, at which point the game ends. player 1 1βs payoff is u1 = y1y2 +xy1 βy 2 1 β(x 3/3), and player 2βs payoff is u2 = β(y1 βy2) 2 . represent this game in the extensive form. calculate and report the subgame perfect equilibrium.
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