Consider the following perfect information sequential move game between Player 1 andPlayer 2, where x is an integer. Player 1 is the leader and moves first, while Player 2 is thefollower and moves second, after observing Player 1's move.0i.Illustrate the rollback process and find the equilibrium path for every possible valueof x. What are the payoffs to each player at the quilibrium outcome?li.Describe the full set of available strategies available to each Player. Choose one ofthe strategies for each Player and describe what it means.Describe the rollback equilibrium by providing and using the complete strategiesemployed by each Player for every possible value of x.25toyBO24NX

Given information 2 players player 1 and player 2 Given game is sequential game with perfect…

Consider the following perfect information sequential move game between Player 1 and Player 2, where x is an integer. Player 1 is the leader and moves first, while Player 2 is the follower and moves second, after observing Player 1's move. C N D E B 2 F

Consider the following perfect information sequential move game between Player 1 and Player 2, where x is an integer. Player 1 is the leader and moves first, while Player 2 is the follower and moves second, after observing Player 1's move. C N D E B 2 F

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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Question

Consider the following perfect information sequential move game between Player 1 and
Player 2, where x is an integer. Player 1 is the leader and moves first, while Player 2 is the
follower and moves second, after observing Player 1's move.
0
i.
Illustrate the rollback process and find the equilibrium path for every possible value
of x. What are the payoffs to each player at the quilibrium outcome?
li.
Describe the full set of available strategies available to each Player. Choose one of
the strategies for each Player and describe what it means.
Describe the rollback equilibrium by providing and using the complete strategies
employed by each Player for every possible value of x.
25
toy
BO
2
4
NX

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