Consider the extensive form game between Player 1 and Player 2. At each decision

Question

Consider the extensive form game between Player 1 and Player 2. At each decision node one player has to decide whether to stay in ( I )or to leave ( O ) . First Player 1 moves. If Player 1 leaves,the game ends. If Player one stays then Player 2 moves,and so on and so forth until someone leaves or Player 1choses a second time when the game ends. In the backward induction outcome, Player 1 chooses action __ in his first decision node(Please, type either I or O here). The backward induction payoff for Player 1 is __ and for Player 2 is __  (Please, for the last two blanks type a numerical answer, for example: 0, 1, 2,3,...)

4.0 1,1 3.2 Consider the extensive form game between Player 1 and Player 2. At each decision node one player has to decide whether to stay in()or (O). First Player 1 moves. If Player 1 leaves, the Player 1 choses a second time when the game ends. In the backward game ends. If Player one stays then Player 2 moves, and so on and so forth until someone leaves or in his first induction outcome 1 chooses action and for Player 2 is decision node (Please, type either I or O here). The backward induction ayoff for Player 1 (Please, for the last two blanks type a numerical answer, for example: 0, 1.2 3..)

Explanation / Answer

With backward induction,player 1 plays I or stays in, in the last node and before that player 2 will play I and player 1 plays I in first node too.

Thus player 1 chooses I in his first decision node. The bavkward induction payoff for player 1 is 4 and for player 2 is 0

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