In a kidnapping scenario, the kidnapper (Guy) would be inclined to kill the kidnappee (Orlando) if Orlando sees Guy's face, because if Orlando were released, he would be able to help the police capture Guy. Can Orlando find a way out in this situation? When Orlando was kidnapped, he can decide whether to reveal some dirty secret about himself that is unknown to the world. Then in case Guy releases Orlando, Orlando would consider the possibility that Guy will reveal his secret to the whole world if he is arrested. How does this work for Orlando? Find the unique subgame perfect Nash equilibrium.

FIGURE PRB.5 Revised Kidnapping Situation Guy Guy Do not kidnap Kidnap B Orlando 5 Tell dirty secret Guy Orlando Do not tell dirty secret Gay K Release Kill Release Orlando Orlando Tell Do not police tell Tell police Do not tell Guy Do not Tell tell 3