Question
The Count of the Trumpet is considering sending a town crier in the public square to utter insults at Marquis De Jong I. If he
The Count of the Trumpet is considering sending a town crier in the public square to utter insults at Marquis De Jong I. If he decides not to send the town crier, he gets a gain of 0 and the Marquis has a gain of 10 because that his aristocratic honor is safe. However, if he decides to send a town crier, the Marquis may decide to call him to a duel. If the Marquis decides not to call a duel, the Count gains 10 and the Marquis gains 0 because his aristocratic honor is violated. If the Marquis calls a duel, he will simultaneously decide with the Count what type of blow he will deliver with his sword. If both fighters choose the Bear move, both will be seriously injured and they will each have a loss of 10. If both fighters choose the Wolf move, both will be slightly injured and will then suffer a loss of 5. If one of the two fighter chooses the move of the Bear while the other chooses the move of the Wolf, the one having chosen the move of the Bear will have a gain of 5 while the one having chosen the move of the Wolf will suffer a loss of 5.
a) Represent this game in its extensive form.
b) What are all the Nash equilibria in this game?
c) What are the perfect subgame Nash equilibria?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started