ECON 487 San Diego State University Money Pot Game Creation Quiz Questions i have upload a photo of the quiz If anyone knows how to solve it , it is an onl

ECON 487 San Diego State University Money Pot Game Creation Quiz Questions i have upload a photo of the quiz If anyone knows how to solve it , it is an online course so we can work all the semester together to ge a good grades for me 10:09
Back
Quiz1.pdf a
Econ 487
Quiz 1
Name:
Signature:
Imagine a two-player game that proceeds as follows. A pot of money is created with $6 in it
initially. Player 1 moves first, then player 2, then player 1 again, and finally player 2 again. At each
player’s turn to move, she has two possible actions: “grab” (G ) or “share” ( S ). If she “grabs”,
she gets 2/3 of the pot, the other player gets 1/3 of the pot, and the game ends. If she “shares” then
the size of the current pot is multiplied by 3/2 and the next player gets to move. At the last stage
at which player 2 moves, if she chooses S the pot is still multiplied by 3/2, and player 2 gets 1/3
of the pot, and player 1 gets 2/3 of the pot.
(a) Describe this game using a game tree.
(b) Write down the strategies each player has:
Player 1:
Player 2:
(c) Find the equilibrium using backward induction (or rollback) in the tree and describe it
below:
Rollback Strategies: Player 1:
Player 2:
Rollback payoff: Player 1:
Player 2:
(d) How does your answer to part (c) change if the pot is split equally between the players if
player 2 chooses S in the last stage?
Dashboard
Calendar
To Do
Notifications
Inbox

Purchase answer to see full
attachment