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Consider the fol lowing dynamic game: 2 (2,0) (3,1) 2 1 (5,2) K (1,4) c 1 (1,0) L (3,1) (2,5) (a) What is the
Consider the fol lowing dynamic game: 2 (2,0) (3,1) 2 1 (5,2) K (1,4) c 1 (1,0) L (3,1) (2,5) (a) What is the strategy set for each player? How many strategies does each player have? (b) Find SPNE. (c) Is there a NE in which action C is a part of equilibrium strategy? (d) Give an example of some other NE that is not SPNE.
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Microeconomics
Authors: Roger A. Arnold
12th Edition
1285738306, 978-1285738307
