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Joanna has a credit card account with Card Bank. Card Banks available strate gies are to raise Joannas credit card interest rate or do nothing.
Joanna has a credit card account with Card Bank. Card Banks available strate gies are to raise Joannas credit card interest rate or do nothing. Joannas available strategies are to transfer her Card Bank account balance to another creditor or do nothing. If Card Bank raises Joannas interest rate and Joanna does nothing, Card Bank increases profits by $1,000 while Joanna receives - $1,000. If Card Bank raises Joannas interest rate and Joanna transfers her account to another creditor, Card Bank receives -$300 while Joanna receives - $100. If Card Bank does nothing and Joanna does nothing, each player receives $0. If Card Bank does nothing and Joanna transfers her account to another creditor, Card Bank receives -$300 while Joanna receives -$150. Diagram the game tree for this sequential game. Indicate any Nash equilibria
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