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Questions › DSE › DSE 2018 › Q46
4 marks, −1Game Theory › Game theory and strategic behaviour › Extensive-form games and backward inductionHardabout 3 min

DSE 2018 Question 46: Game theory and strategic behaviour

Player 1 moves first and chooses LLL or RRR. If she plays RRR, the game ends with payoffs (10,0)(10, 0)(10,0). If she plays LLL, player 2 chooses LLL or RRR; if RRR, the game ends with (0,20)(0, 20)(0,20); if LLL, player 1 then chooses LLL or RRR, with LLL giving (30,30)(30, 30)(30,30) and RRR giving (40,0)(40, 0)(40,0). This game

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Player 1 moves first and chooses L or R. If she plays R, the game ends with payoffs (10, 0). If she plays L, player 2 chooses L or R; if R, the game ends with (0, 20); if L, player 1 then chooses L or R, with L giving (30, 30) and R giving (40, 0). This game (A) has three subgame perfect equilibria (B) has a unique Nash equilibrium (C) has a subgame perfect equilibrium in which 2 plays L (D) has a unique Nash equilibrium outcome

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 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.