Kill you if you don\'t open the safe, and let you live if you do. Should the own
ID: 1205828 • Letter: K
Question
Kill you if you don't open the safe, and let you live if you do. Should the owner believe the threat and open the safe? The table shows the value that each person places on the various possible outcomes. Similar games appear in many films, including Die Hard, Crimson Tide, and The Maltese Falcon. Assume for simplicity the game tree is illustrated in the figure to the right. Who moves first? The moves first. What is the equilibrium? Does the safe's owner believe the thug's threat? Does the safe's owner open the safe? What is the subgame perfect Nash equilibrium? The game does not have a Nash equilibrium. The Nash equilibrium is for the owner to open the safe and for the thug to kill regardless of whether the owner opens the safe. The Nash equilibrium is for the owner to not open the safe and for the thug to only kill if the owner does not open the safe. The Nash equilibrium is for the owner to open the safe and for the thug is only kill if the owner does not open the safe.Explanation / Answer
Answer:
a. Who moves first?
The safe's owner would move first because he decides to open or not, and the thug decides to kill him or not.
b. What is the equilibrium?
The sub-game perfect Nash equilibrium is for the owner to not open the safe, and the thug to not kill the owner.
c. Does the safe’s owner believe the thug's threat?
No. Should the owner refuse to open the safe, the thug is better off not killing him.
d. Does the safe owner open the safe?
No.
e. What is the sub-game perfect Nash equilibrium?
A) The game does not have a Nash equilibrium
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