Please Answer: (a) Suppose that the choices of all three stations are made simul
ID: 1231759 • Letter: P
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Please Answer:
(a) Suppose that the choices of all three stations are made simultaneously. Find any Nash equilibria. [Hint: try to set this up so it looks more like a normal-form game. To do this for three players use two 2 2 matrices: let MBC choose the matrix, RBC the row and CBC the column.].
(b) Suppose now that the game is played sequentially. MBC moves rst. RBC moves second and CBC moves third. Each station can observe all previous moves before making her choice. Explain what you think will happen.
(c) Look at your answers to parts (a) and (b). Give a game-theory intuition why there is, or is not, a di erence in the outcome.
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