Classwork 7 Autograder: Sequential Games

Groupmates Present

List the groupmates who are present (include yourself)

1) Subgame 2 (Player A)

If player A “takes” in subgame 2, what will their payoff be?

If player A “passes”, what will their payoff be?

Based on these responses, what is player A’s best response for this subgame?

Not checked

2) Subgame 3 (Player B, anticipating A’s best response)

If player B “takes” in subgame 3, what will their payoff be, considering player A’s best response?

If player B “passes”, what will their payoff be, considering player A’s best response?

Based on these responses, what is player B’s best response for this subgame?

Not checked

3) Subgame 4 (Player A, anticipating B’s best response)

If player A “takes” in subgame 4, what will their payoff be, considering player B’s best response?

If player A “passes”, what will their payoff be, considering player B’s best response?

Based on these responses, what is player A’s best response for this subgame?

Not checked

4) Final analysis: subgame perfect equilibrium and implied payoffs

Multiple choice: Which strategy profile is the subgame perfect equilibrium?

a) Player A always takes; player B always passes. b) Player A always passes; player B always takes. c) Both players always pass at every decision node. d) Both players always take at every decision node.

Numeric entry: implied payoff for Player A Numeric entry: implied payoff for Player B

Not checked

5) Conditions on (X, Y) for collaboration until stage 4

Answer (text)

Not checked

6) Present value of $1 in 1 year at 5%

If I offer you $1 a year from now and $X right now, solve for X.

Not checked

7) Present value of $50K in 1 year (5%)

Enter the present value

Not checked

8) Present value of $50K in 20 years (5%)

Enter the present value

Not checked

9) Present value of $100 per year forever (5%)

Enter the present value

Not checked

10) Expected present values and recommendation

Numeric entry: expected present value of Consulting

Numeric entry: expected present value of Masters

Numeric entry: expected present value of PhD

Multiple choice: What should she do?

a) Do consulting (no grad school). b) Go to grad school and get a Masters. c) Go to grad school and get a PhD. d) Indifferent among the three options.

Not checked