Economics
posted by Candice .
According to the following game tree, and if the entrant and incumbent both only care about their own monetary payoff, what is/are the game's Nash equilibrium?
Entrant  stays out (2,15)
 enters
If the entrant enters,
Incumbent  co operates (5,5)
 punishes (3,9)
So what is the games nash equilibrium/equilibria, and what is the game's subgame perfect nash equilibrium/equlibria?
(I wasn't sure what was the difference too)
Thank you!
Respond to this Question
Similar Questions

managerial economics
Problem One5 Consider the following simultaneous moves game in normal form: Player Two t1 t2 Player One r1 2,4 0,2 r2 4,5 0,1 (a)State the set of Nash equilibrium strategies. (b)State the payoffs to each player in the Nash equilibrium. 
managerial economics
Players A and B are playing a simultaneous moves game and both can choose either strategy S1 or strategy S2. If both choose S1 both receive 0. If both choose S2 both receive 2. If their chosen strategies differ they both receive 4. … 
MACROeconomics  Game Theory
I donâ€™t get anything from below except for (c). Please help me! Thanks. Consider the following game matrix: ....................................................Player B............ ............................................Left............Right....... … 
economics (game theory)
For anyone with experience working with game theories... 1.) Two animals are fighting over some prey. Each can be passive or aggressive. Each prefers to be aggressive if its opponent is passive, and passive if its opponent is aggressive; … 
economics
For anyone with experience working with game theories... 1.) Two animals are fighting over some prey. Each can be passive or aggressive. Each prefers to be aggressive if its opponent is passive, and passive if its opponent is aggressive; … 
economics
Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, whihc is more comfortable than standing. a.) Suppose … 
college microeconomics
Suppose that two players are playing the following game. Player 1 can choose either top or bottom, and Player 2 can choose either left of right. The payoffs are given in the following table Player 2 Left Right top 9,4 2,3 Player 1 … 
game theory
Consider the following game. Player 2 L R U 6, 1 ........8, 3 Player 1 UM 4, 9........8, 4 DM 7, 2 ............6, 9 D 5, 4...........9, 3 (a) Is there a mixed strategy Nash equilibrium in which player 1 is placing positive probability … 
maths, economics, game theory
1. What is a degenerate game? 2. Is the following game degenerate or not, justify. 3. Find all nash equilibria in the game in pure or mixed strategies a b c d T 4,5 1,4 2,0 1,2 B 6,0 0,1 1,3 0,2 
microeconomics
. Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are given in the following table: Player 2 Player 1 Left Right Top 9 4 2 …