eee 20 14 Nev 07 Second subgame, 8 Last time apply SPE fay a) ~solve NE in each subgame ~ roll beck payoffs Lesson Steotesic effects mattec! ~inutstmen® game ~tan desiga = tolls, Tuo pore-stategy NE inthis subgame { (Fay,gir) (Quy, £2) 2 (vio) (o,v) las 2 players each period each chooses For Q Jom ends a5 Soon as Someone (Q's Sood nes if the other player quits Fist a= a a “you win @ prize "vet | First stage cevisited 77 , sige sige bad news: each period iy which both F A FO FN cent) ~ teow Cech player pay cost a C= 154 wo a) oy 0,0 Svenps sw wt #858 v, Sky * bribe contests fe (rede (F69,00 ) insnyer |g Two peeved game Quy : NE fe (0, EG a FO) (ae, fe0) instege A eam 2s Qu) “WE we know fm Two casts: (VOC) e herein class Fhea Uwin today VEE & on homework Open Yale Shreees Denes uneeeegeny eter,fuse strategy SPE (wth ved ek tame pool mate, $0». 9D Mised NE in this motrix is = [€r0,20), Cot) ] booth F with prob [ (20,009) ( Fo, 8) J area “ gultler ve Figater | E pad 0 mee isilons (Cte) wd) J | ce Mow tok fir mised strategy ep >> & Wot pode, craziness > / Vine inv : Second Segaene A + frob of Fights oecwng lakate posed game 2 (ey N a WA Fyits —> ~epe i} vltep)e pe fea} “+ G2 1A Quits —7 Op +'0lrp) Ga aA Fo suak Qu) Cost zy We ane stye 4503 0.0 Aare Poeecl mikin Bere, Mixed NE bes both Fike with pay = wee Goat. value (0,0) perells in this mixed ME = (9 °) ‘tS know this analysis is already solved! > Same Conclusion, toe both mix With - pen Fs x back te first stage >> to fo cE) cpl FRED) I ened A . to) v0 3 3 aN Eo 0,v | TT 0,0 For the mised NE in peried 2 FO) Qu {OV | 0,0 Open Yale ‘arene Sense ici inert et ara