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Questions › DSE › DSE 2017 › Q16
2 marks, −0.666666666666667Game Theory › Game theory and strategic behaviour › Extensive-form games and backward inductionModerateabout 3 min

DSE 2017 Question 16: Game theory and strategic behaviour

In a two-player game, player 111 first chooses UUU or DDD. Playing DDD ends the game with payoffs (1,0)(1,0)(1,0). Playing UUU lets player 222 choose UUU or DDD: player 222's DDD ends it with (0,2)(0,2)(0,2), while UUU lets player 111 choose again - player 111's DDD gives (4,0)(4,0)(4,0) and UUU gives (3,3)(3,3)(3,3) (payoffs are (player 111, player 222)). This game has

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In a two-player game, player 1 first chooses U or D. Playing D ends the game with payoffs (1,0). Playing U lets player 2 choose U or D: player 2 's D ends it with (0,2), while U lets player 1 choose again - player 1 's D gives (4,0) and U gives (3,3) (payoffs are (player 1, player 2)). This game has (A) a unique Nash equilibrium (B) a unique subgame perfect equilibrium (C) no subgame perfect equilibrium (D) multiple subgame perfect equilibria

Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.

What this question tests

This question is on Extensive-form games and backward induction, part of Game theory and strategic behaviour in Game Theory.

Games played in sequence, solved from the end back to the start.

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Question from the DSE 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.