Question
Present the following situations as games. Clearly state the players, ac- tions, whether the game is simultaneous or sequential, the information structure (complete or incomplete),
Present the following situations as games. Clearly state the players, ac- tions, whether the game is simultaneous or sequential, the information structure (complete or incomplete), and the payoffs(a) Give Normal Form Representation:Each one of two bars charges its own price for a beer, either $2, $4, or $5. The cost of obtaining and serving the beer can be neglected. It is expected that 6000 beers per month are drunk in a bar by tourists, who choose one of the two bars randomly, and 4000 beers per month are drunk by natives who go to the bar with the lowest price, and split evenly in case both bars offer the same price. The payoffs for each bar is the revenue earned.(b) Give Extensive Form Representation:Six stones lie on the board. Black and White alternate to remove either one or two stones from the board, beginning with White. Whoever first faces an empty board when having to move loses. The winner gets $1, the loser loses $1.
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