Describe a real word example of a game where timing matters.

• Be specific in describing the players in the game and the strategies avaialbleto them.
• Describe the timing of the game (who moves first and who moves second).
• What are the relative payoffs associated with each combination of moves (high/low or positive/negative).
• Keep it simple, I really just want you to present me with a simple example of a real world example of a game where timing matters
• Do you think that understanding backward induction can help you make better decisions?

Example:I like to get work done in the afternoons, but It is difficult when my dogs are being rowdy. In his game I move first and my dogs move second. The strategies available to me are either 'walk my dogs' or 'not walk my dogs.' The strategies available to my dogs are either 'sleep' or 'play.' If I walk my dogs, they will get the best payoff from sleeping and the worst payoff from playing because they will already be tired. If I don't walk my dogs they will not be tired so they will get the best payoff from playing and the worst payoff from sleeping. I only get a positive payoff when I get my work done, and I only get my work done if they are sleeping. I get the best payoff If my dogs sleep and I don't have to take them for a walk. I get the second best payoff (but still positive) when my dogs sleep after a walk. This is because Is still get my work done, but taking them for a walk requires more time and effort relative to not walking my dogs. I get the worst payoff (negative) when they play and I can't get my work done.

In this example the subgame perfect equilibrium (SPE) is for me to walk my dogs and then they sleep. Using these equilibrium strategies I get my second best payoff, while my dogs get their best payoff. If I decided to pursue my best payoff by not walking my dogs, their best-response would be to play and I would get my worst payoff. By using backward induction I am able to recognize that my best payoff is not attainable because my dogs only sleep after I give them a walk. Therefore, if I want to get my work done and earn a positive payoff, I need to walk my dogs.