Select the correct statement about the centipede game in our lecture. Group of answer choicesThe SPE strategy is "continue at every turn" for both players, and our experiment supported the SPE. The SPE strategy is "stop at every turn" for both player, and our experiment did not support the SPE.The SPE strategy is "stop at every turn" for both player, and our experiment supported the SPE.The SPE strategy is "continue at every turn" for both players, and our experiment did not support the SPE.

Select the correct statement about the centipede game in our lecture. Group of answer choicesThe payoff from the strategy "stop at every turn" gives you higher payoff than the strategy "continue at every turn" regardless of how your opponent plays.The payoff from the strategy "stop at every turn" gives you lower payoff than the strategy "continue at every turn" regardless of how your opponent plays.The payoff from the strategy "stop at every turn" may or may not give you higher payoff than the strategy "continue at every turn," depending on how your opponent plays.

Consider the following centipede game. At Player 1's first node, he chooses between down (D), which immediately ends the game with payoffs (1,1), or across (A). If A, then Player 2 chooses between down (d), which ends the game with payoffs (0,4), and across (a). If a, then Player 1 moves, choosing between going across (α) or down (δ). If he goes across, payoffs are (2,5); if he goes down, payoffs are (3,3). The game that we have constructed is as follows: Which of the following statements is FALSE? If Player 1 acts rationally at the last node, he will choose down Player 2, expecting that Player 1 will act rationally at the last node, will play down The equilibrium outcome is (3,3) Assuming both players play rationally, the game ends at the first node

There are two players, 1 and 2. At the first stage, player 1 chooses whether to play the following simultaneous move game:  L RU 2,2 0,0D 0,0 4,4If player 1 chooses "play" at the first stage, player 1 and 2 play the above simultaneous move game; If player 1 choose "not play" at the first stage, both players get the payoff of 3. How many SPE does the game have?   Group of answer choices1234

Find the SPE of the following game. (Note: the game is the same as before except that this has no red circle).   Group of answer choices(Rlr,dr)(Rr,dr)(Rrl,dr)(Rr,r)

Select the correct statement about the trust game in our lecture. Group of answer choicesThe SPE of the game does not capture "trust" between two players since x=0 in the SPE. However, our experiment suggests people tend to trust the other player in average. The game captures "trust" since x=100 in the SPE. This result is also supported by our experiment. Since x=0 in the SPE, player 1 cannot get a higher payoff regardless of player 2's choice of y. In our experiment, it was more profitable to play x=0 rather than x=100 in average if you are randomly matched with one of your classmates.