Recall the war of attrition game we studied in class. Take T = 2, but now consider c > 1. Find all the subgame perfect Nash equilibria, pure and mixed. [Hint: Make sure to consider all the possibilities of mixing in one period but not the other.]

Lecture slides:

War of Attrition Two players competing for a prize normalized to $1 Each period, 1...T, each chooses simultaneously to Fight or Quit Game ends as soon as someone Quits If opponent quits first, a player wins the prize, if both quit at once (or never), neither gets the prize Each player bears a cost of 0