Assignment Backward Induction

Published by Mario Oettler on

Game Theory & Blockchain Repeated Games and Sequential Games Assignment Backward Induction

Task

Draw the decision tree for the following situation. There are two players, A and B. Player A begins and can put a coin either with head up or tails up. Then it’s player B’s turn. He can also put heads or tails up.

  • If the two coins show the same symbol, player A receives one coin and player B loses one coin.
  • If player A puts head up and player B tails, A receives three coins and B loses one coin.
  • If player A puts tails up and player B head, A receives one coin and B loses two coins.

Solution

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