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Ali and Soner are friends. Ali has an Xbox series that Soner is interested in. The Xbox values 4000 TL for Ali and 10,000 TL
Ali and Soner are friends. Ali has an Xbox series that Soner is interested in. The Xbox values 4000 TL for Ali and 10,000 TL for Soner. The bargain over the sale of Xbox is as follows: First, Soner offers a price then Ali either accepts it or not. If Soner accepts the offer, the negotiation is over. While if he rejects Soner's offer, Ali will offer a price that Soner must accept or not. If there is no agreement, the game will end with no sale. And also if a player is indifferent between rejecting or accepting, he accepts. There is no discount factor. (a) (10 points) Represent this game as an extensive-form game and compute sub-game Nash equilibrium. (b) (10 points) In which step, the agreement is reached? And what are the payoffs? Ali and Soner are friends. Ali has an Xbox series that Soner is interested in. The Xbox values 4000 TL for Ali and 10,000 TL for Soner. The bargain over the sale of Xbox is as follows: First, Soner offers a price then Ali either accepts it or not. If Soner accepts the offer, the negotiation is over. While if he rejects Soner's offer, Ali will offer a price that Soner must accept or not. If there is no agreement, the game will end with no sale. And also if a player is indifferent between rejecting or accepting, he accepts. There is no discount factor. (a) (10 points) Represent this game as an extensive-form game and compute sub-game Nash equilibrium. (b) (10 points) In which step, the agreement is reached? And what are the payoffs
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