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Consider the following game seen in class (Fig. 6.1 in DSR) First stage: investment game GLOBALDIALOG Second stage: GlobalDialog's pricing decision High 14 Don't
Consider the following game seen in class (Fig. 6.1 in DSR) First stage: investment game GLOBALDIALOG Second stage: GlobalDialog's pricing decision High 14 Don't Invest Don't 0,0 GLOBAL- DIALOG 0, CROSS- TALK Low Invest Second stage: CrossTalk's pricing decision High 14 CROSS- TALK Low Second stage: pricing game GLOBALDIALOG High Low CROSS- TALK High 2,2 -10,6 Low 6,-10 -2,-2 Represent the entire two-stage game in a single game-tree. Remember to draw information sets between nodes where necessary.
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