Question
Two field generals, 1 and 2, are positioned to attack an enemy stronghold in the valley below. The two armies are separated by a treacherous
Two field generals, 1 and 2, are positioned to attack an enemy stronghold in the valley below. The two armies are separated by a treacherous canyon and communication between the two commanders is impossible. The generals know that if they coordinate their attack, both moving their troops into the valley at dawn, they will defeat the enemy, earning a value. If one of the two sides attacks alone, the other will not be able to re-enforce the attacker's troops in time to prevent a defeat at the enemy's hands, losing v. Suppose all these elements of the strategic problem are common knowledge. Consider a modified version of this game. Suppose that General 1 must first decide whether or not to attack, and then General 2 decides whether or not to attack based upon General 1's decision. Solve for the (pure) Nash equilibria and the Subgame Perfect Nash Equilibria
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