Question
Two siblings, Brad and Mike are playing a simultaneous hit and tell game. Brad can hit Mike or not and Mike can tattle on
Two siblings, Brad and Mike are playing a simultaneous hit and tell game. Brad can hit Mike or not and Mike can tattle on Brad or not. Relative to no hitting and no tattling, if Brad hits Mike, and he tattles they both experience a loss of 10. Not telling, gets Mike a bruise, a loss of 5 but Brad gains 5. If he tattles untruthfully,Mike gets a gain of 5 and Brad loses 5. If they get along, no one gets anything If Mike threatens to tell, what would Brad's best response be?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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