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1. Consider the following game. There are 21 pennies on a table. You and your op

ID: 1177925 • Letter: 1

Question

1. Consider the following game. There are 21 pennies on a table. You and your opponent alternatively rebove the pennies from the table. At each turn, one, two, or three pennies must be removed from the table. Passing is not allowed. The person who removies the last penny loses. Suppose the payoff for winning is 1, the payoff for losing is -1. Suppose you move first.

a. Is this game a perfect or imperfect information game? Explain why.

b. Express the game as an extensive form game.

c. What is the SPNE? What is the outcome of the game? Who wins?


Please show all your work

Explanation / Answer

a. Perfect information game

b.

c. In game theory, a subgame perfect equilibrium (or subgame perfect Nash equilibrium) is a refinement of a Nash equilibrium used in dynamic games. A strategy profile is a subgame perfect equilibrium if it represents a Nash equilibrium of every subgame of the original game.