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Consider the following simplified trust game: Players 1 and 2 are both endowed with $10. Player 1 can either send Player 2 x equal to

Consider the following simplified trust game:

  1. Players 1 and 2 are both endowed with $10.
  2. Player 1 can either send Player 2 x equal to $10 or $0.
  3. Player 2 receivesX 3. That is, Player 2 receives $30 or $0.
  4. Player 2 then can send back y equal to $20 or $0 to Player 1.

Question: Draw the extensive form graph of this game and solve for the SPNE.

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