Now assume that the mall location game (from Exercises S9 in Chapter 3 and S10 in this chapter) is played sequentially but with a different order of play: Big Giant, then Titan, then Frieda’s. (a)...


Now assume that the mall location game (from Exercises S9 in Chapter 3 and S10 in this chapter) is played sequentially but with a different order of play: Big Giant, then Titan, then Frieda’s.


(a) Draw the new game tree.


(b) What is the subgame-perfect equilibrium of the game? How does it compare to the subgame-perfect equilibrium for Exercise S9 in Chapter 3?


(c) Now write the strategic form for this new version of the game.


(d) Find all of the Nash equilibria of the game. How many are there? How does this compare with the number of equilibria from Exercise S10 in this chapter?




May 26, 2022
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