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Take the following situations and model them as a game. Make sure that the payoffs you write down match the description of the situation, and
Take the following situations and model them as a game. Make sure that the payoffs you write down match the description of the situation, and be creative in places where the description is vague. Your answer for each part should consist of a game tree (properly labeled). In each case you should also indicate all the Subgame Perfect Nash Equilibria of your game.
- (a)A foreign firm is deciding whether or not to invest in a developing country. After investment decisions are made, the country's government decides whether or not to expropriate the foreign investment (seize ownership of invested capital).
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