Pricing Problem Firm 2 Low price High price Low price 10,10 100,-50 Firm 1 High price -50,100 50,50
10, 10 100, -50 -50, 100 50, 50 Firm 2 Firm 1 Low price High price Pricing Problem Low price High price
13.5 Sequential Games Sequential game-Game in which players move in turn, responding to each other's actions and reactions. 13.5.1 Extensive form of a game ▣Extensive form(扩展形)of a game-Representation of possible moves in a game in the form of a decision tree
13.5 Sequential Games Sequential game - Game in which players move in turn, responding to each other’s actions and reactions. 13.5.1 Extensive form of a game Extensive form (扩展形) of a game - Representation of possible moves in a game in the form of a decision tree
Modified Product Choice Problem Firm 2 Crispy Sweet Crispy -5,-5 10,20 Firm 1 Sweet 20,10 -5,-5
-5, -5 10, 20 20, 10 -5, -5 Firm 2 Crispy Sweet Firm 1 Crispy Sweet Modified Product Choice Problem
Crispy -5,-5 Crispy -Firm 2 Sweet 10,20 Firm 1- Crispy-20,10 Sweet-Firm2 Sweet -5,-5 Product Choice Game in Extensive Form
Firm 2 Crispy Sweet Firm 2 Firm 1 Crispy Crispy Sweet Sweet -5, -5 -5, -5 20, 10 10, 20 Product Choice Game in Extensive Form
13.6 Threats,Commitments, and Credibility ▣Strategic move(策略性行动)-Action that gives a player an advantage by constraining his behavior. A threat is useful only if it is credible.Otherwise,an empty threat is not credible
13.6 Threats, Commitments, and Credibility Strategic move (策略性行动) - Action that gives a player an advantage by constraining his behavior. A threat is useful only if it is credible. Otherwise, an empty threat is not credible